Government will give international recognition to Indian currency, permission to open rupee account outside the country
The effort to give international recognition to the Indian currency has moved forward. India’s central bank i.e. Reserve Bank of India (RBI) said last Thursday that it will give permission to open rupee accounts outside the country. This move is part of the strategic plan to make the domestic currency an internationally important currency. According to language news, the central bank said in its annual report that there will be emphasis on linking the FEMA (Foreign Exchange Management Act) operational framework with the emerging macroeconomic environment. With this, attention will be given to rationalizing various guidelines. RBI said that it has finalized the strategic action plan for 2024-25.
Indians living outside India will get the facility
According to the news, it also envisages liberalizing the External Commercial Borrowings (ECB) framework and launching Phase 1 of the Software Platform for ECB and Trade Credit Reporting and Approval (Spectra) project. According to the report, the RBI will allow individuals resident outside India (PROIs) to open rupee accounts outside the country as part of the 2024-25 agenda to integrate the domestic currency into the mainstream currencies globally.
According to the news, it also envisages liberalizing the External Commercial Borrowings (ECB) framework and launching Phase 1 of the Software Platform for ECB and Trade Credit Reporting and Approval (Spectra) project. According to the report, the RBI will allow individuals resident outside India (PROIs) to open rupee accounts outside the country as part of the 2024-25 agenda to integrate the domestic currency into the mainstream currencies globally.
RBI’s objective
The latest RBI report said that the PROI of Indian banks through special accounts (Special Non-Resident Rupee-SNRR) and Special Rupee Vostro Account (SRVA) will facilitate lending in rupees and enable foreign direct investment (FDI) and portfolio investment. The purpose is.
Rationalization of Liberalized Remittance Scheme (LRS) and review of IFSC (International Financial Services Centre) rules under FEMA are also part of the agenda for the current financial year. The RBI report said the rules have been rationalized towards promoting internationalization of the Indian rupee to enable settlement of bilateral trade in local currencies.
