Reserve Bank of India (RBI) has permitted invoicing and payment for international trade in Indian Rupees vide A.P (DIR Series) Circular No. 10 RBI/2022-2023/90 dated 11.07.2022 on “Settlement of International Trade in Indian Rupees (INR )”. This was stated by the Union Minister of State for Finance, Dr. Bhagwat Kisanrao Karad in a written reply to today’s question in the Rajya Sabha.
Giving more information, the minister said that as per paragraph 10 of the circular, the approval process is such that for opening special INR Vostro accounts, partner country banks can approach Authorized Dealer (AD) banks in India who can seek RBI approval. with arrangement details. The AD bank that maintains a special INR Vostro account is required to ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk and Uncooperative Jurisdictions for which FATF has called for countermeasures, as determined by the Minister.
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