RBI allowed invoicing and payments for international trade in Indian Rupee

The Reserve Bank of India (RBI) has allowed invoicing and payments for international trade in Indian Rupee vide A.P (DIR Series) Circular No. 10 RBI/2022-2023/90 dated 11.07.2022 on “International Trade Settlement in Indian Rupees (INR)”.

In a written response to a question in the Rajya Sabha today, Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad made this claim.

Giving more details, the Minister said that in accordance with Paragraph 10 of the Circular, the approval process is that banks from partner countries may approach Authorised Dealer (AD) banks in India who may seek approval from RBI with information about the arrangement for the opening of Special INR Vostro accounts. According to the Minister, in order to comply with FATF’s request for countermeasures, the AD bank maintaining the Special INR Vostro Account must ensure that the correspondent bank is not from one of the nations or jurisdictions listed in the most recent FATF Public Statement on High Risk & Non-Cooperative Jurisdictions.