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RBI allows invoicing, and payments for international trade in Indian rupee

August 03, 2022

RBI allows invoicing, and payments for international trade in Indian rupee
Reserve Bank of India (RBI) has allowed invoicing and payments for international trade in the Indian Rupee, Union Minister of State for Finance Bhagwat Kisanrao Karad informed the Rajya Sabha on Tuesday.

In a written reply to a question in Rajya Sabha, Karad said the central bank has allowed payments for international trade in the Indian currency through a circular on “International Trade Settlement in Indian Rupees (INR)” issued on July 11, 2022.

Giving more information, the minister stated that in terms of Para 10 of the Circular, the approval process is that for the opening of Special INR Vostro accounts, banks of partner countries may approach Authorised Dealer (AD) banks in India which may seek approval from RBI with details of the arrangement.

The AD bank maintaining the Special INR Vostro Account is required to ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non-Co-operative Jurisdictions on which FATF has called for countermeasures, he said.

Meanwhile, the RBI’s composite financial inclusion index (FI-Index) capturing the extent of financial inclusion across the country rose to 56.4 in March 2022, showing growth across all parameters.

The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.

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