Foreign Trade Policy: Now the international trade will be in rupees, the Ministry of Commerce has changed the policy

Pankaj Prasad
Foreign Trade Policy
Foreign Trade Policy

The commerce ministry has approved international trade settlement in rupees.

Foreign Trade Policy: Now international trade can be done by Indian importer in rupees. The commerce ministry has approved international trade settlement in rupees. The ministry has allowed bill making, payment and settlement of import-export deals in Indian rupees to promote international trade in domestic currency.

RBI had proposed to start the facility

Earlier, the Reserve Bank of India (RBI) in July had asked banks to make additional arrangements to conclude export and import transactions in rupees. In view of the increasing interest of the global business community towards the Indian currency, RBI had proposed to introduce this facility. According to this decision of RBI, the Directorate General of Foreign Trade (DGFT) constituted under the Ministry of Commerce has now added a new paragraph in the Foreign Trade Policy (FTP).

DGFT issued notification

In a notification issued by DGFT, it has been said that in line with RBI's circular dated July 11, 2022, paragraph 2.52D has been notified, which allows settlement, bill generation and payment of import-export transactions in Indian Rupees. gives. After the issuance of this notification, now business deals can be settled in Indian Rupees as well. For this, it will be necessary to open special Vostro accounts by authorized dealer banks in India.

Indian importers will be able to pay their imports in Indian Rupees

After this approval, Indian importers will be able to pay for their imports in Indian Rupees through this arrangement. This amount will be deposited in the special Vostro account of the respective bank of the partner country. This amount will be credited against the bills paid for the supply of goods or services to the foreign supplier. In early September, the RBI and the commerce ministry had asked the top management of the country's major banks and representatives of trade bodies to promote transactions in rupees.