Following the Reserve Bank of India’s (RBI) decision to permit invoicing and payments for international trade in rupees and other local currencies, 123 correspondent banks from 30 trade partner nations have set up special accounts in India to facilitate these transactions, according to Minister of State for Commerce and Industry, Jatin Prasada.

In response to a query in the Rajya Sabha, Prasada stated that the RBI has approved the opening of 56 Special Rupee Vostro Accounts (SVROs) across 26 banks authorized to handle foreign exchange transactions.

Additionally, the RBI has implemented Local Currency Settlement System (LCSS) agreements with key trading partners—UAE, Indonesia, and the Maldives—to promote the use of Indian rupees alongside the local banks of these nations for cross-border trade settlements.

To further streamline international transactions, the Foreign Exchange Management (Manner of Receipt and Payment) Regulations were amended in December 2023, allowing trade payments in all foreign currencies, including the local currencies of trading partners, as well as the Indian rupee.