With an aim to build an AtmaNirbhar Indian Economy and Viksit Bharat, Prime Minister Narendra Modi has emphasized the need to make the Indian Rupee more accessible and acceptable throughout the world. Accordingly, the Reserve Bank of India has taken numerous steps in the recent past to popularise the use of Indian Rupee in global markets, especially for trade settlements. With numerous benefits like stability and lower transaction costs, the RBI has already permitted banks from 22 countries to open Special Vostro Rupee Accounts for settling payments in Indian rupees. The significance of using rupee for international-trade settlement has gained more attention with India settling trade bills in rupees with Russia and the UAE in the past few months.
Speaking to Akashvani News about internationalization of rupee, leading economist Uday Tardalkar said.
Additionally, the International Monetary Fund has identified the Indian Rupee as a potential international currency but inclusion of the currency in IMF’s Special Drawing Rights or the SDR basket still remains to be achieved.
