The Central Bank of India in a bid to promote INR as a globally accepted currency has approved banks to open five ‘Vostro’ accounts for trade with Sri Lanka.
This Is through the Indian rupee trade settlement mechanism that allows using Indian rupees instead of dollars and other major currencies for international transactions, Foreign media said.
India continues to discuss denomination of trade in rupees with larger trading partners, including key oil suppliers Saudi Arabia and United Arab Emirates.
Sri Lankan travel sector has made nemours requests to the Government to allow the acceptance of Indian rupee in Sri Lanka.
The Reserve Bank of India (RBI) is receiving encouraging responses from countries to participate in rupee-based trading, deputy governor T Rabi Sankar said.
RBI has been pushing rupee-based trade settlement since July this year by creating a comprehensive framework for it, as part of its endeavour in the process of ‘internationalisation’ of the rupee.