There are many countries which are expecting the rupee payments for settling specific trade with India. The Indian government is hopefully expecting the volume of transactions will grow in near future.
RBI has granted the permission for domestic and foreign authorized dealer banks in 60 cases for the opening of Vostro (SVRA) accounts with correspondant 18 countries namely, Botswana, Fiji, Germany, Israel, Kenya, Guyana, Malaysia, Myanmar, Mauritius, Oman, Russia, New Zealand, Singapore, Sri Lanka, Tanzani, Uganda, Seychelles and the United Kingdom.
The precious forex reserves are already saved and also reducing reliance on the US Dollar and Euro which has increased the bilatrel trade. The Bilatrel tade has increased cash and capital flows in local currencies.
A official from EE said, “Discussions are happening with United Arab Emirates (UAE) for settling bilatrel trade in our respective currencies (Rupee-Dirham) for imports and exports. Currently, UAE is the 3rd largest trading partner with India after the USA and China. In the first half of the current financial year, the bilatrel trade was at $44 billion.
