US EditionRBI Eyes to Take Rupee Global, Unveils Measures to Make INR International Currency
RBI permits rupee lending to Bhutan, Nepal, and Sri Lanka and introduces new currency reference rates to boost trade and attract 10-15% more foreign investment, officials said.
- On Wednesday, the Reserve Bank of India announced measures to expand the Indian Rupee's use in international trade and said regulatory amendments will be notified shortly.
- To ease strain on reserves, the Reserve Bank of India said promoting rupee billing will reduce forex pressure as nearly 90 percent of exports to India's neighbouring South Asian countries total $25 billion.
- Authorised Dealer banks in India have been permitted to lend in INR to residents of Bhutan, Nepal and Sri Lanka, while SRVA balances can now invest in corporate bonds and commercial papers.
- RBI Governor Sanjay Malhotra said `These measures will accelerate the rupee's internationalization process, allowing India to become more integrated into the global financial system`, while analysts estimate foreign investment could rise 10-15 percent.
- Progressive liberalisation under the Foreign Exchange Management Act means the Reserve Bank of India is expanding currency swaps and cross-border UPI to make INR liquidity accessible abroad.
12 Articles
12 Articles
What are RBI’s new steps to promote internationalisation of the Rupee?
The Reserve Bank of India on October 1st, 2025, announced new measures to promote the internationalisation of the Indian Rupee. RBI Governor Sanjay Malhotra said banks are now permitted to lend in Indian Rupees to non-residents from Bhutan, Nepal, and Sri Lanka for bilateral trade transactions, encouraging global use of the INR. He also proposed establishing transparent reference rates for the currencies of India’s major trading partners to faci…
RBI expands steps towards internationalisation of rupee with cross-border lending and new reference rates
RBI expands rupee use abroad, letting banks lend to Bhutan, Nepal, Sri Lanka, easing cross‑border trade, adding reference rates and opening SRVA accounts for corporate bond investment.
What is rupee internationalisation?
Rupee internationalisation is set to enable authorised dealer banks -- or commercial banks authorised by the RBI to conduct forex transactions -- in India and their overseas branches in these three countries to lend in rupee to persons resident in Bhutan, Nepal and Sri Lanka. Get more Currency News and Business News on Zee Business.
Last Updated on October 1, 2025 9:43 pm by INDIAN AWAAZ The Reserve Bank of India (RBI) on Wednesday announced several new measures to promote the wider use of the Indian rupee and other local currencies in international trade and financial transactions. The move is part of the government’s long-term […]
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