RBI, FinMin ask banks, trade bodies to push cross-border rupee trade

Reserve Bank and the finance ministry on Wednesday asked top management of banks and representative of trade bodies to push exports and import transactions in rupee.

It was stressed during a meeting that banks should connect with their foreign counterparts for opening special rupee vastro accounts to facilitate cross-border trade in Indian currency rather than popular mode dollar, sources said.

Trade associations and their foreign trading partners should explore opportunities to make use of the framework, sources added.

The meeting, which saw participation from various stakeholders, including officials of external affairs and commerce ministries, Indian Banks' Association, urged embassies abroad to promote the mechanism through diplomatic channels.

According to sources, countries like Sri Lanka, Argentina and Zimbabwe may be interested in settling bilateral trade in rupee.

RBI in July issued a detailed circular asking banks to put in place additional arrangements for export and im