<p>India’s Finance Minister Nirmala Sitharaman has said that about 22 countries are in talks with New Delhi to seek possibilities of conducting bilateral trade in the rupee.</p>

<p>In an interview with the news channel NDTV, Sitharaman said, “Also many of those countries are running short on dollar reserves, but yet their basic trade cannot be stopped."&nbsp;</p>

<p>"So they see the Indian rupee as a stable currency," she added.</p>

<p>The minister also added that India better understands the needs of the developing world and its leadership aimed at bringing them aboard the global developmental agenda.</p>

<p><strong>Watch:&nbsp;Rupee inches to replace Dollar in global trade; 18 countries agree on rupee-trade mechanism</strong></p>

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<p>"And for achieving their development goals, they find it easy to talk to us about having rupee trade," she said.</p>

<p>It must be noted that the de-dollarisation efforts have gained momentum around the world in the wake of the Russia-Ukraine war. Countries around the world have grown insecure over the West’s monopoly of the global trade system after it slapped unilateral sanctions on Russia.</p>

<h2><strong>Sitharaman hails G20 success</strong></h2>

<p>The finance minister also hailed the historic G20 summit held in New Delhi last week as successful, adding that it gave hope for multilateralism.</p>

<p>“The maturity with which Indian teams handled the G20 document at various stages makes it historic," Sitharaman said.&nbsp;</p>

<p>"The team that largely consisted of women did brilliant work. There was a spirit of cooperation among the countries," she said, adding, “The spirit with which we worked that gave of hope of multilateralism.”&nbsp;</p>

<h2><strong>Internationalisation of Indian Rupee</strong></h2>

<p>Earlier in March, Indian media reported that at least 18 nations had agreed to settle their bilateral trade with India in rupees.&nbsp;</p>

<p>India’s central bank, the Reserve Bank of India, had allowed 18 nations, such as Germany, Singapore, Sri Lanka, UK, Kenya and many others, to conduct bilateral trade in rupee.<br />
<br />
In fact, India has already begun trading in rupees with many of its neighbouring countries like Nepal and Bhutan.</p>

<p>India’s Minister of State for Commerce and Industry Anupriya Patel had told Parliament in August that a significant part of the India-Nepal trade was being done in Indian rupees.</p>

<p><a href="https://www.wionews.com/business-economy/india-to-offer-russia-to-invest-trapped-rupees-serei-lavrov-634749"><strong>Also read:&nbsp;India to offer Russia to invest trapped rupees: Sergey Lavrov</strong></a></p>

<p>Also, all bilateral trade with Bhutan was also being conducted in rupees only.</p>

<p>"Rupee trade mechanism has been initiated to facilitate trade in national currency with Russia. As of July 2, RBI has approved 34 applications from different Russian banks for opening SRVA in 14 Indian commercial banks," the minister said in a written reply.</p>

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India’s Finance Minister Nirmala Sitharaman has said that about 22 countries are in talks with New Delhi to seek possibilities of conducting bilateral trade in the rupee.

India’s Finance Minister Nirmala Sitharaman has said that about 22 countries are in talks with New Delhi to seek possibilities of conducting bilateral trade in the rupee. In an interview with the news channel NDTV, Sitharaman said, “Also many of those countries are running short on dollar reserves, but yet their basic trade cannot be stopped." "So they see the Indian rupee as a stable currency," she added. The minister also added that India better understands the needs of the developing world and its leadership aimed at bringing them aboard the global developmental agenda. Watch: Rupee inches to replace Dollar in global trade; 18 countries agree on rupee-trade mechanism × "And for achieving their development goals, they find it easy to talk to us about having rupee trade," she said. It must be noted that the de-dollarisation efforts have gained momentum around the world in the wake of the Russia-Ukraine war. Countries around the world have grown insecure over the West’s monopoly of the global trade system after it slapped unilateral sanctions on Russia. Sitharaman hails G20 success The finance minister also hailed the historic G20 summit held in New Delhi last week as successful, adding that it gave hope for multilateralism. “The maturity with which Indian teams handled the G20 document at various stages makes it historic," Sitharaman said. "The team that largely consisted of women did brilliant work. There was a spirit of cooperation among the countries," she said, adding, “The spirit with which we worked that gave of hope of multilateralism.” Internationalisation of Indian Rupee Earlier in March, Indian media reported that at least 18 nations had agreed to settle their bilateral trade with India in rupees. India’s central bank, the Reserve Bank of India, had allowed 18 nations, such as Germany, Singapore, Sri Lanka, UK, Kenya and many others, to conduct bilateral trade in rupee. In fact, India has already begun trading in rupees with many of its neighbouring countries like Nepal and Bhutan. India’s Minister of State for Commerce and Industry Anupriya Patel had told Parliament in August that a significant part of the India-Nepal trade was being done in Indian rupees. Also read: India to offer Russia to invest trapped rupees: Sergey Lavrov Also, all bilateral trade with Bhutan was also being conducted in rupees only. "Rupee trade mechanism has been initiated to facilitate trade in national currency with Russia. As of July 2, RBI has approved 34 applications from different Russian banks for opening SRVA in 14 Indian commercial banks," the minister said in a written reply. WATCH WION LIVE HERE ×

At least 22 nations in talks with India to trade in rupee: Finance minister

<p>The Indian government on Tuesday announced the approval for banks from 22 partner nations,&nbsp;including Russia and the United Kingdom, to establish "vostro" accounts within India. This move aims to enhance the rupee trade by facilitating international banking services for clients with global banking needs.</p>

<p>A "vostro" account is an account held by domestic banks for foreign banks in the local currency. It serves as a mechanism for domestic banks to cater to the international banking requirements of their clients.</p>

<p>This concept falls under correspondent banking, wherein a bank (or intermediary) conducts wire transfers, commercial transactions, deposit acceptance, and documentation collection on behalf of another bank.</p>

<p>This provision offers local banks increased access to international financial markets and the ability to serve global clients without the need for a physical presence in other countries.</p>

<p>India has actively been urging its partner nations to facilitate trade using the rupee, aiming to reduce the expenses linked with currency conversion during transactions.</p>

<p>Several other countries, including Bangladesh, Russia, Germany, Israel, Uganda, Sri Lanka, the UK, Singapore, and New Zealand, have also established 'vostro' accounts to engage in rupee-denominated trade.</p>

<p>(<em>Inputs from Reuters</em>)</p>

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The Indian government on Tuesday announced the approval for banks from 22 partner nations, including Russia and the United Kingdom, to establish "vostro" accounts within India.

The Indian government on Tuesday announced the approval for banks from 22 partner nations, including Russia and the United Kingdom, to establish "vostro" accounts within India. This move aims to enhance the rupee trade by facilitating international banking services for clients with global banking needs. A "vostro" account is an account held by domestic banks for foreign banks in the local currency. It serves as a mechanism for domestic banks to cater to the international banking requirements of their clients. This concept falls under correspondent banking, wherein a bank (or intermediary) conducts wire transfers, commercial transactions, deposit acceptance, and documentation collection on behalf of another bank. This provision offers local banks increased access to international financial markets and the ability to serve global clients without the need for a physical presence in other countries. India has actively been urging its partner nations to facilitate trade using the rupee, aiming to reduce the expenses linked with currency conversion during transactions. Several other countries, including Bangladesh, Russia, Germany, Israel, Uganda, Sri Lanka, the UK, Singapore, and New Zealand, have also established 'vostro' accounts to engage in rupee-denominated trade. (Inputs from Reuters) WATCH WION LIVE HERE

India's rupee trade gets a 'Vostro' boost

Reports from Egypt suggest that the country may pay for imports from India in rupees. Egyptian supply minister Ali Moselhy told Reuters that the country is looking to pay for imports from India, China and Russia in their local currencies instead of the US Dollar.

Egypt may start paying for Indian imports in rupees

<p>India and Sri Lanka stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well&nbsp;as aspects relating to Rupee trade".</p>

<p>Dr Pramod Kumar Mishra, a cabinet rank official in India's Prime Minister Narendra Modi's administration, met with Sri Lankan High Commissioner Milinda Moragoda in New Delhi on Friday to continue the bilateral dialogue between two South Asian neighbours on a number of issues, including on debt restructuring matters crucial for Colombo's economic recovery.&nbsp;</p>

<p>"The High Commissioner stressed the vital role that economic integration between the two countries could play in Sri Lanka's economic recovery," an official readout stated.&nbsp;</p>

<p>"High Commissioner Moragoda also followed up [Pramod Kumar Mishra] on a range of issues pertaining to the bilateral relationship that had been discussed during their last meeting in February," the readout added, while referring to a previous round of bilateral talks between New Delhi and Colombo that addressed former's support for latter's economic recovery alongside aforementioned matters of bilateral cooperation.</p>

<p>"The matters discussed included further economic integration between Sri Lanka and India, enhancing Indian investments and tourism in Sri Lanka, ways and means to further promote bilateral trade, cooperation in power and energy sector as well as aspects relating to Rupee trade," the official readout stated further.</p>

<p>Several banks in Sri Lanka have opened special rupee trading accounts, called Vostro accounts. This means that Sri Lankan citizens can now hold $10,000 (₹8,26,823) in physical form and for transactions with their Indian counterparts, they can use Indian rupees instead of US dollars.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-to-use-indian-rupee-for-international-trade-543895">Sri Lanka to use Indian rupee for international trade, more countries aim to follow</a></strong></p>

<p>India's Prime Minister Narendra Modi's administration since July 2022, has been looking to bring countries that are short of dollars, into its rupee settlement mechanism.</p>

<p><strong>ALSO WATCH |&nbsp;Sri Lanka mull using Indian rupee for economic transactions</strong></p>

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<p>Designating Indian Rupee as a legal currency in Sri Lanka has provided India's coastal neighbour at its south much-needed liquidity support to help tide over its economic crisis amid inadequate availability of the US dollar.</p>

<p>Meanwhile, India's finance ministry has asked the Indian Banks’ Association (IBA) and the Federation of Indian Export Organisations (FIEO) to proceed with an awareness campaign to sensitise stakeholders about the rupee trade.&nbsp;</p>

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India and Sri Lanka stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade".

India and Sri Lanka stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade". Dr Pramod Kumar Mishra, a cabinet rank official in India's Prime Minister Narendra Modi's administration, met with Sri Lankan High Commissioner Milinda Moragoda in New Delhi on Friday to continue the bilateral dialogue between two South Asian neighbours on a number of issues, including on debt restructuring matters crucial for Colombo's economic recovery. "The High Commissioner stressed the vital role that economic integration between the two countries could play in Sri Lanka's economic recovery," an official readout stated. "High Commissioner Moragoda also followed up [Pramod Kumar Mishra] on a range of issues pertaining to the bilateral relationship that had been discussed during their last meeting in February," the readout added, while referring to a previous round of bilateral talks between New Delhi and Colombo that addressed former's support for latter's economic recovery alongside aforementioned matters of bilateral cooperation. "The matters discussed included further economic integration between Sri Lanka and India, enhancing Indian investments and tourism in Sri Lanka, ways and means to further promote bilateral trade, cooperation in power and energy sector as well as aspects relating to Rupee trade," the official readout stated further. Several banks in Sri Lanka have opened special rupee trading accounts, called Vostro accounts. This means that Sri Lankan citizens can now hold $10,000 (₹8,26,823) in physical form and for transactions with their Indian counterparts, they can use Indian rupees instead of US dollars. ALSO READ | Sri Lanka to use Indian rupee for international trade, more countries aim to follow India's Prime Minister Narendra Modi's administration since July 2022, has been looking to bring countries that are short of dollars, into its rupee settlement mechanism. ALSO WATCH | Sri Lanka mull using Indian rupee for economic transactions × Designating Indian Rupee as a legal currency in Sri Lanka has provided India's coastal neighbour at its south much-needed liquidity support to help tide over its economic crisis amid inadequate availability of the US dollar. Meanwhile, India's finance ministry has asked the Indian Banks’ Association (IBA) and the Federation of Indian Export Organisations (FIEO) to proceed with an awareness campaign to sensitise stakeholders about the rupee trade. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India steps up rupee's internationalisation for Sri Lanka's economic recovery

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports.

India's Russian oil buy hurting Rupee trade

The Reserve Bank of India has rolled out a system to settle international trade transactions in the Indian rupee instead of the dollar. How does the rupee trade work? How will it impact India's trade relations? Palki Sharma tells you.

Gravitas: RBI announces rupee mechanism for foreign trade

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