New Delhi: The Centre has eased rules governing export transactions in Indian rupees, giving exporters greater flexibility to invoice overseas sales and receive payments in the domestic currency. The move is aimed at encouraging wider use of the rupee in international trade.
Under the revised Foreign Trade Policy, export contracts, invoices and payments with countries outside the Asian Clearing Union (ACU) can be denominated and settled in rupees or foreign currencies. Rupee-denominated export realisations will also be treated on par with foreign-currency earnings for applicable trade-policy benefits and export obligations.
The policy change is expected to provide exporters with an additional settlement option and reduce their dependence on foreign currencies for eligible international transactions. It also supports the government’s broader efforts to strengthen the international role of the Indian rupee.
The latest move builds on the rupee trade framework introduced earlier, under which international trade could already be invoiced and settled in Indian currency through arrangements involving authorised banks and Special Rupee Vostro Accounts.