22 Countries Open Bank Accounts To Trade In Indian Rupee

Banks of 22 countries have opened Rupee Vostro accounts in Indian banks in order to trade in the Indian currency as part of gradual plan to veer away from dollar payment.

“This would enable exporters and importers to invoice and pay in their respective domestic currencies enabling the development of a bilateral foreign exchange market,” the Lok Sabha was informed in a written reply.

These countries include Belarus, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, Bangladesh, Maldives, Kazakhstan and United Kingdom.

Last year an arrangement was put in place by the Reserve Bank of India (RBI) allowing transactions in domestic currencies in order to promote exports from India and to bring in increasing interest towards rupee.

The globalisation of the rupee gathered steam following the RBI’s announcement of a mechanism to settle payments for international trade in rupees, especially for India’s exports.

RBI permitted billing and payments for global trade in the rupee on July 11, 2022.