RBI Targets: The Reserve Bank of India (RBI) is intensifying efforts to promote the internationalisation of the Indian Rupee (INR) by implementing regulatory changes aimed at non-residents.
This move, detailed in the RBI’s annual report for 2023-24, includes initiatives to strengthen the appeal of Gujarat International Finance Tec-City (GIFT City) in comparison to other global financial hubs.
RBI Targets…
Key objectives outlined by RBI officials involve facilitating bilateral trade settlements in INR and liberalising regulations governing INR accounts for non-residents.
To advance the internationalisation agenda and facilitate local currency settlements with partner nations, the RBI is actively reviewing the Foreign Exchange Management (Deposit) Regulations pertaining to rupee accounts held by non-residents, in consultation with the government.
In the upcoming financial year, RBI’s strategy to internationalise the rupee encompasses enabling persons resident outside India (PROIs) to open rupee accounts overseas.
Additionally, Indian banks will be empowered to extend rupee-denominated loans to PROIs, and mechanisms like special non-resident rupee accounts and special rupee vostro accounts will facilitate foreign direct investment and foreign portfolio investment.
These measures are part of RBI’s broader efforts to enhance the global standing of the INR and integrate it further into international financial transactions.
By liberalising INR-related regulations and expanding the scope for non-resident participation, RBI aims to bolster India’s economic ties with global markets while reinforcing GIFT City’s position as a competitive international financial centre.
The initiatives underscore RBI’s commitment to fostering a conducive environment for INR’s international usage and supporting India’s economic growth trajectory through enhanced financial connectivity with the global economy.
Also Read:Visa Extension for Students and Tourists in Thailand