AMN
The RBI aspires to promote the internationalization of the Indian Rupee to facilitate bilateral trade in local currencies. As a part of its strategic action plan, the RBI on Thursday allowed the opening of rupee accounts outside India.
In its Annual Report, RBI said rationalization of various guidelines will be a priority, with an emphasis on continuous synchronization of the Foreign Exchange Management Act (FEMA) operating framework with the evolving macroeconomic environment. The Central Bank said, the Strategic Action Plan for 2024-25 has been finalized, envisaging the liberalization of the external commercial borrowing (ECB) framework.
The RBI will permit persons resident outside India (PROIs) to open rupee accounts outside India as part of the 2024-25 agenda for internationalizing the domestic currency.
Further, RBI said rationalizing regulations to promote the internationalization of the Indian Rupee was undertaken to enable the settlement of bilateral trade in local currencies.