The Reserve Bank of India (RBI) announced a system to enable commerce in the local currency, and the government has activated it by amending the Foreign Trade Policy to permit international trade invoicing, payment, and settlement in the Indian rupee.

The Ministry of Commerce and Industry’s Directorate General of Foreign Trade (DGFT) gave notice of the policy revisions.

To ease commerce in Indian rupees, the central bank permitted authorised banks in India to open special rupee Vostro accounts of correspondent banks of any partner trading countries.

According to the agreement, Indian importers will deposit payment in rupees against invoices for the delivery of products or services from the foreign seller or supplier into the special Vostro account of the partner nation bank, according to the trade policy.