INR is Inching Forward Towards Becoming an International Currency

By Samrat Pradhan, Content Writer Friday, 17 March 2023

The Indian Rupee (INR) is now accepted for transactions in 18 countries around the world, indicating India's growing prominence on the global scene. Union Minister of State for Finance Bhagwat Kishanrao Karad informed Parliament on Wednesday that the Reserve Bank of India (RBI) has authorised banks from 18 countries to open Special Vostro Rupee Accounts (SVRAs) in order to settle payments in rupees. 

Karad stated in Rajya Sabha that the RBI had granted 60 such approvals. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi elaborated, saying, "Around 30 banks from outside countries have signed up with 30 banks on our side, so 30 accounts." "The transaction has begun in bits and pieces," he told reporters, according to PTI.

According to government information, the following countries accept INR payments: Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.

Sberbank and VTB Bank, the major lenders in Russia were among the first ones to gain a go-ahead from Russia. Gazprom, another Russian bank which does not have a presence in India has also opened an account. The action is consistent with the Narendra Modi government's efforts to promote the rupee as an international currency on a global scale. Last year, the RBI and the Finance Ministry directed bank executives to encourage export and import transactions in INR.

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