large scale image
LCP Image

Back to TSCFM News

RBI’s step towards internationalization of rupee

July 21, 2022

RBI’s step towards internationalization of rupee
The recent announcement by the Reserve Bank of India (RBI) to allow cross-border trade transactions in the rupee is a timely move and a step towards internationalisation of the currency, according to experts. 

Earlier this month, RBI had asked banks to put in place additional arrangements for invoicing, payment, and settlement of exports/ imports in rupee, a step aimed at promoting the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in the domestic currency.
 
Speaking at an event organized by IMC Chamber of Commerce and Industry, RBI’s former Executive Director G Padmanabhan said, ‘for internationalisation, one of the things to happen is that increasingly the currency gets used for trade transactions. This (RBI’s rupee invoicing move) is definitely a step forward as far as internationalisation is concerned”. 

DBS Bank’s Senior Economist and Executive Director Radhika Rao said rupee invoicing will help in establishing the rupee’s role as the settlement currency internationally. 

“It is a very timely and definite step towards an eventual internationalisation. Now this eventuality is few years to a few decades away but nonetheless, the timing of this circular has understandably drawn many to conclude quite swiftly that this is meant to be here now,” she said. 

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp