RBI Aims to Boost INR Utilization with Russian Partners

The Reserve Bank of India is exploring ways to utilize Indian rupees accumulated by Russian trade counterparts for imports or investments in India. Emphasizing the shift towards local currencies, N Senthil Kumar highlighted the need to build trust and increase INR-Rouble transactions to develop the market.

The Reserve Bank of India is exploring options to enhance the utilization of Indian rupees held by Russian trade partners, according to a senior official's statement on Thursday.

In efforts to move away from reliance on the US dollar, the central bank aims to facilitate the use of INR for settling imports or capital investments within India.

N Senthil Kumar highlighted the challenges, pointing out stakeholders' hesitation in using local currencies and stressed the importance of trust and frequent INR-Rouble transactions to evolve the market.

(With inputs from agencies.)