Govt permits invoicing, payment and settlement of trade in rupee

The commerce ministry allowed invoicing, payment and settlement of exports and imports in Indian rupee, a move aimed at facilitating trade in the domestic currency.

In July, the Reserve Bank of India (RBI) had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

To align the Foreign Trade Policy (FTP) with this decision of the RBI, the Directorate General of Foreign Trade (DGFT) added a new paragraph in the FTP.

DGFT is an arm of the ministry which deals with export and import related matters.

“Para 2.52 (d) is notified to permit invoicing, payment and settlement of exports and imports in INR (Indian rupee) in sync with RBI’s …circular dated July 11, 2022. This shall come into force with immediate effect,” DGFT said in a notification.