India sparkling: Rupee inches nearer to being international currency; these 18 countries now accept trade payment in INR
In what is certainly an indication of India's dynamic on the world stage, the Indian Rupee (INR) has been approved by 18 countries across the globe for transactions. The Reserve Bank of India (RBI) has allowed banks from 18 countries to create Special Vostro Rupee Accounts (SVRAs) to settle payments in rupees, according to Union Minister of State for Finance Bhagwat Kishanrao Karad.
Speaking in Rajya Sabha, Karad said that 60 such approvals have been given by the RBI. Elaborating upon the matter, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said - "About 30 banks from overseas countries have signed up with 30 banks on our side, so 30 accounts." "The transaction has started in bits and pieces," he said.
Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom.
Sberbank and VTB Bank, the largest lenders in Russia were among the first ones to receive a go-ahead from Russia. Gazprom, another Russian bank that does not have a presence in India has also opened its account. The move may be viewed in line with the Narendra Modi government's push to promote the Rupee on a global stage as an international currency. Last year, the RBI and the Finance Ministry had asked the top management of banks to push export and import transactions in INR.
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