India has been attempting to internationalise the rupee for a long time. Currently, currencies such as the US dollar, Euro, Japanese yen, British pound, and to a lesser extent, the Chinese yuan, can claim to be global reserve currencies. However, the latest report suggests that India has made tremendous progress towards giving the rupee this status.
According to the report, the Indian rupee is getting closer to becoming a recognised currency as more nations try to de-dollarize international trade.
The RBI, India’s central bank, has authorized the opening of 60 special rupee vostro accounts in 18 countries, including Russia and Sri Lanka, to facilitate the smooth operation of international trade in INR.
Bhagwat Karad, India’s Minister of State for Finance, stated that the Reserve Bank of India (RBI) had granted permission to domestic and foreign AD (Authorised Dealer) banks to open SRVAs of banks from 18 nations in 60 cases.
The purpose of these SRVAs is to settle payments in Indian rupees.
The minister stated that Russia has been actively promoting local currency transactions as part of the “de-dollarization” movement among the 18 nations. However, he noted that India has been advocating for trade in local currency primarily to boost exports.