Govt permits invoicing, payment and settlement of trade in rupee

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp





The commerce ministry on Friday allowed invoicing, payment and settlement of and imports in Indian rupee, a move aimed at facilitating trade in the domestic currency.


In July, the Reserve Bank of India (RBI) had asked banks to put in place additional arrangements for export and transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.


To align the (FTP) with this decision of the RBI, the Directorate General of Foreign Trade (DGFT) added a new paragraph in the FTP.


is an arm of the ministry which deals with export and related matters.


“Para 2.52 (d) is notified to permit invoicing, payment and settlement of and imports in INR (Indian rupee) in sync with RBI’s …circular dated July 11, 2022. This shall come into force with immediate effect,” said in a notification.


Accordingly, it said, settlement of trade transactions in INR may also take place through special vostro accounts opened by authorised dealer banks in India.


As per the new para, Indian importers undertaking imports through this mechanism will make payment in INR which will be credited into the special vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller/supplier.


“Indian exporters undertaking of goods and services through this mechanism shall be paid the export proceeds in INR from the balances in the designated special vostro account of the correspondent bank of the partner country,” it added.


Earlier this month, the Reserve Bank and the finance ministry had asked top management of banks and representative of trade bodies to push exports and transactions in .

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp

Never miss any important news. Subscribe to our newsletter.

Leave a Reply

Your email address will not be published.