New Delhi: The Reserve Bank of India (RBI) has allowed invoicing and payments for international trade in Indian Rupee vide circular dated July 11, 2022, on “International Trade Settlement in Indian Rupees (INR)”, Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad, said in a written reply to a question in Lok Sabha today.
Giving more information, the Minister stated that the circular lays down that all exports and imports under the arrangement may be denominated and invoiced in Rupee (INR) and the settlement of trade transactions under the arrangement shall take place in INR.
The RBI has put in place the arrangement to promote the growth of global trade with an emphasis on exports from India and to support the increasing interest of the global trading community in INR. The framework put in place by the RBI is applicable for any partner country seeking to undertake trade with India in INR in terms of RBI’s circular dated July 11, 2022, the Minister added.
Further, the Minister stated, the Directorate General of Foreign Trade (DGFT) has introduced a provision in the Foreign Trade Policy vide a notification dated September 16, 2022, to allow for International Trade Settlement in INR i.e., invoicing, payment, and settlement of exports/imports in Indian Rupees in sync with RBI’s circular dated July 11, 2022.
Further changes have been introduced in the Foreign Trade Policy vide a DGFT’s notification dated November 9, 2022, and public notice dated November 9, 2022, for the grant of exports benefits and fulfilment of Export Obligation for export realisations in INR as per RBI guidelines, the Minister stated.
– global bihari bureau
