The Reserve Bank of India (RBI) has authorized invoicing and payments for international trade in Indian rupees, Union Minister of State for Finance Bhagwat Kisanrao Karad said on Tuesday.
In a written response to a question posed to Rajya Sabha, Karad said the central bank had allowed payments for international trade in Indian currency through a circular on “International Trade Regulations in Indian Rupees (INR) published on July 11, 2022.
Giving more information, the Minister said that under paragraph 10 of the circular, the approval process is that for the opening of special INR Vostro accounts, banks in partner countries can contact approved banks (AD ) in India who can seek approval from RBI. with the details of the arrangement.
The AD bank that operates the Vostro INR Special Account is required to ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High-Risk and Non-Cooperative Jurisdictions for which the FATF called for countermeasures, he said. .