(MENAFN- KNN India) Changed foreign trade policy to allow settlement of international trade in rupees
New Delhi, September 17 (KNN) With the amendment of Foreign Trade Policy, invoicing, payment and settlement of international trade is now allowed in Indian Rupee.
It activates the mechanism announced by the Reserve Bank of India (RBI) to facilitate trading in the national currency.
The changes to the policy were notified by the General Directorate of Foreign Trade (DGFT) under the Ministry of Commerce.
The central bank has authorized authorized banks in India to open special Vostro rupee accounts of correspondent banks of any partner trading country to facilitate trading in the Indian currency.
Under the arrangement, Indian importers will make payment in rupees to the Vostro special account of the partner country’s bank against invoices for the supply of goods or services from the foreign seller or supplier, as per the trade policy. (KNN Office)
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