India, Malaysia can now settle their trade in Indian Rupee
New Delhi, Apr 1 : India and Malaysia can now settle their trade in Indian Rupee (INR) in addition to the current modes of settlement in other currencies, the government announced on Saturday.
This follows the decision by the Reserve Bank of India in July 2022 to allow settlement of international trade in Indian Rupee (INR). This initiative by RBI is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian Rupee (INR), an official statement said.
India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalised this mechanism by opening a Special Rupee Vostro Account through its Corresponding Bank in India i.e. Union Bank of India.
Under this facility, exporters and importers from India and Malaysia can now invoice their trade in Indian Rupee and achieve better pricing for goods and services traded.