India's Push for Rupee-Denominated Trade Gains Momentum

The Indian government and the RBI are actively promoting the use of Special Rupee Vostro Accounts to facilitate bilateral trade in local currencies with 30 countries. They've enlisted 123 banks to open 156 such accounts and are negotiating trade agreements with several nations to expand trade.

The Indian government announced that the Reserve Bank of India (RBI) has permitted 123 banks from 30 trade partner nations to establish 156 Special Rupee Vostro Accounts (SRVAs) with 26 Indian banks. This initiative aims to promote bilateral trade in local currencies.

The RBI has engaged in local currency settlement agreements with countries such as the UAE, Indonesia, and Maldives to encourage cross-border trade in the rupee. Minister of State for Commerce and Industry, Jitin Prasada, outlined these developments while addressing the Rajya Sabha.

Furthermore, the government, in collaboration with the RBI, is advocating for the increased use of domestic currencies in cross-border transactions. Current negotiations for Free Trade Agreements (FTAs) with Oman, Australia, the UK, and the European Union are underway to further this agenda.

(With inputs from agencies.)