Investing.com – India will start using it in trade deals with Russia from next week, said Ajay Sahay, director of the Federation of Indian Export Organizations. About that informed main agency.
In early November, the Indian government authorized the use of the national currency in international trade agreements to promote exports as part of foreign trade policy. As noted by the Ministry of Commerce, these amendments were adopted to simplify and facilitate the international trade of Indian rupees, given the growing interest in the internationalization of the Indian national currency.
The Central Bank of India issued a circular on trade settlements between India and other countries in rupees in mid-July. Thus, Indian importers must make payment in national currency, which will be credited to a special correspondent bank account of the correspondent bank of the partner country on invoices for the supply of goods or services from a foreign supplier. Exporters will be paid from account balances.
“A number of issues have been resolved. Exporters and importers have started asking banks to open accounts (in rupees). Trade agreements with Russia under the new payment system are expected from next week for some deliveries,” Sahay said.
Five or six banks have been allowed to open special correspondent accounts to facilitate the settlement of international rupiah trade between India and Russia, an unnamed government official added.
“There were about 10-11 vostro accounts open. For example, six vostro accounts are opened at IndusInd Bank, which means six different Russian banks have opened accounts with this bank,” a government official said on condition of anonymity.
Text prepared by Timur Aliev