RBI to permit rupee accounts outside of India

To internationalise the rupee, the Reserve Bank of India (RBI) will permit accounts to be opened in rupees outside of India. The first phase of the SPECTRA platform for ECBs and trade credits would be launched together with the liberalisation of external commercial borrowing (ECB) regulations, according to the RBI's 2024–25 strategy plan. The guidelines will be revised to reflect changes in the economy.

 "INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," the report said.

Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year.

The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies.

Going forward, it said the liquidity operations would continue to be in sync with the stance of the monetary policy, while the foreign exchange operations would be guided by the objective of ensuring orderly movements in the exchange rate of the rupee.