India amends rules to boost use of ₹, other currencies in global trade

India’s central bank last week announced changes to the Foreign Exchange Management Act (FEMA), 1999, to boost the use of Indian rupee and other national currencies in international trade.

The Reserve Bank of India (RBI) has signed memoranda of understanding with central banks in the United Arab Emirates, Indonesia and Maldives to encourage such efforts, it said in a press release.

India’s central bank has announced changes to the Foreign Exchange Management Act, 1999, to boost the use of Indian rupee (₹) and other national currencies in global trade.
It has signed MoUs with central banks in the UAE, Indonesia and Maldives to encourage this.
The changes also enable non-residents to engage in legitimate transactions using ₹ accounts and facilitate FDI in non-debt instruments.

This move comes after the Indian rupee hit a record low of 86.70 per US dollar.

The special rupee vostro account (SRVA) has gained traction since its introduction in July 2022, with multiple foreign banks establishing SRVAs in India.

The revamped regulations also enable non-resident Indians to engage in legitimate transactions using Indian rupee accounts and facilitate foreign direct investment in non-debt instruments.

Fibre2Fashion News Desk (DS)

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}