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RBI announces measures for settlement of international trade in rupees
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IANS | 11 Jul, 2022
The
Reserve Bank of India (RBI) on Monday announced an additional framework
for invoicing, payment, and settlement of exports/imports in Indian
rupees.
According to the RBI, the authorised dealer banks should get the prior approval from its Foreign Exchange Department.
The
central bank said the measure is taken to promote growth of global
trade with emphasis on exports from India and to support the increasing
interest of the global trading community in the Indian rupee.
The
RBI said the broad framework for cross border trade transactions in
Indian rupee under Foreign Exchange Management Act, 1999 (FEMA) include
that all exports and imports under this arrangement may be denominated
and invoiced in Indian rupee, the exchange rate between the currencies
of the two trading partner countries may be market determined, and the
settlement of trade transactions under this arrangement shall take place
in Indian rupee.
The RBI said in terms of Regulation 7(1) of
Foreign Exchange Management (Deposit) Regulations, 2016, authorised
dealer banks in India have been permitted to open Rupee Vostro accounts.
Accordingly,
for settlement of trade transactions with any country, the authorised
dealer banks in India may open Special Rupee Vostro Accounts of
correspondent bank/s of the partner trading country.
In order to
allow settlement of international trade transactions through this
arrangement, the RBI said that Indian importers undertaking imports
through this mechanism shall make payment in rupee which shall be
credited into the Special Vostro account of the correspondent bank of
the partner country, against the invoices for the supply of goods or
services from the overseas seller /supplier.
Indian exporters,
undertaking exports of goods and services through this mechanism, shall
be paid the export proceeds in rupee from the balances in the designated
Special Vostro account of the correspondent bank of the partner
country.
The RBI has also listed out the framework in case of
advance against exports, setting of export receivables against import
payables, bank guarantee, use of surplus balance in the Special Vostro
Accounts and others.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
|
78.25
|
75.65 |
| Japanese
Yen |
58.85 |
56.85 |
| As on 13 Aug, 2022 |
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| Daily Poll |
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