The government has asked trade units, banks to explore more opportunities to facilitate trade in rupees with other countries. These include Mauritius, Russia and Sri Lanka.
Image Credit source: Representational Image
The government has asked trade units, banks to explore more opportunities to facilitate trade in rupees with other countries. These include Mauritius, Russia and Sri Lanka. PTI has given information about this news by quoting its sources. Indian banks have opened Special Vostro Rupee Accounts (SVRA) with the banks of these three countries, with the help of which the way to trade in rupee has been opened.
Bank opened special accounts
Recently, SBI Mauritius Limited and People’s Bank of Sri Lanka have opened an SVRA with State Bank of India (SBI). Bank of Ceylon has also opened an account in its Indian subsidiary in Chennai. At the same time, Union Bank of India has opened a special rupee account in Ros Bank Russia. At the same time, Indian Bank based in Chennai has opened such accounts of three Sri Lankan banks, which include NDB Bank and Seylan Bank based in Colombo.
Earlier, the Reserve Bank of India had allowed international trade in Indian currency in July. It is believed that this will save 30-36 billion dollars every year. Apart from this, the scope of such trade will expand from many countries. Due to trade in rupees, it will have a positive effect on the exchange rate and will strengthen the rupee.
RBI allows international trade in rupees
The Reserve Bank of India had asked the banks to make additional arrangements for bill making, payment and import-export deals in Indian rupees. This step has been taken in view of increasing exports from India and increasing interest of the global business community in the rupee. Madan Sabnavis, chief economist of Bank of Baroda, said that this arrangement will reduce the pressure on the rupee as there will be no demand for dollars for imports.
It is believed that very soon there will be international trade in rupees from countries like Russia, Iran and Sri Lanka. Talking about the recent trade with Russia, in the first two months of the current financial year i.e. April and May, India exported $ 0.25 billion to Russia, while imported $ 5.03 billion. At present, India is importing from Russia on a large scale.