The RBI has unveiled new measures to promote wider international use of the Indian Rupee (INR), expanding both trade and investment avenues.
- Internationalisation of the Rupee means allowing the Indian Rupee to be used for global trade and financial transactions.
Key Measures Announced
- Loans in Indian Rupees to Non-Residents: Authorised dealer banks in India and their overseas branches will be permitted to lend in INR to persons resident in Bhutan, Nepal, and Sri Lanka, including a bank.
- Establishing Transparent Reference Rates: Financial Benchmarks India Limited (FBIL) will develop transparent reference rates for the rupee against major global currencies.
- Currently, the RBI publishes reference rates for the U.S. dollar, euro, Japanese yen, and sterling.
- Widening Use of Special Rupee Vostro Accounts (SRVAs): SRVA balances can now be used to invest in corporate bonds and commercial papers.
- Previously, surplus vostro balances were allowed to be invested in central government securities.
Special Rupee Vostro Account
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