The IDG, headed by the Reserve Bank’s Executive Director Radha Shyam Ratho, wants invoicing and settling of international trade transactions in the Indian currency to increase its international presence and acceptance. The Reserve Bank of India’s Inter-Departmental Group (IDG) has drawn up measures to make the Indian rupee a global currency.
At present, the rupee is not an international currency because it is not fully convertible on capital accounts, and unrestricted cross-border transfer of funds in this currency is not permitted under Indian rules. The IDG, headed by the Reserve Bank’s Executive Director, Radha Shyam Ratho, wanted invoicing and settling of international trade transactions in the Indian currency to increase its international presence and acceptance. The Reserve Bank is India’s Central Bank.
In a recommendation that will impact non-resident Indians (NRIs), who heavily populate the Gulf region, the IDG has recommended the opening of rupee accounts for NRIs both in India and abroad. Currently, Indians in the Gulf keep their rupee assets in banks within India in various types of NRI accounts.
Source: zawya.com