New Delhi [India], India and Myanmar pioneered a new bilateral trade payment system when the Punjab National Bank's Yangon office on Tuesday completed the first transaction exceeding Rs 1 million for a consignment of pulses under the Rupee-Kyat Settlement Mechanism.
The initiative aims to streamline trade transactions between India and Myanmar, improving efficiency by eliminating complexities associated with exchange rates through direct payments in local currencies.
The Central Bank of Myanmar introduced guidelines for payment procedures through the Special Rupee Vostro Account (SRVA) on January 26 this year. The mechanism covers both maritime and border trade, encompassing transactions of goods and services.
The Indian Embassy in Yangon said in pnbindia. We encourage businesses from both sides to benefit from the @DoC_GoI mechanism @PiyushGoyal @MEAIndia.”
The Global New Light of Myanmar, a Myanmar-based daily, reported on May 3 that Consumer Affairs Secretary Nidhi Khare discussed the fluctuating prices of pulses with the Indian Mission in Yangon in light of the volatile exchange rates and stocks held by traders. This payment mechanism was officially announced on April 13.
Rupee and Kyat settlement mechanism can be done through Punjab National Bank when Indian traders import pulses from Myanmar.
Banks in several countries have opened special Vostro rupee accounts in Indian banks to operate in local currencies. Simply put, Vostro accounts allow national banks to provide international banking services to customers who have global banking needs.
Last year, the Reserve Bank of India launched an agreement that allows transactions in national currencies to promote the growth of global trade with emphasis on Indian exports and generate interesting interest towards the rupee.
The initiative aims to streamline trade transactions between India and Myanmar, improving efficiency by eliminating complexities associated with exchange rates through direct payments in local currencies.
The Central Bank of Myanmar introduced guidelines for payment procedures through the Special Rupee Vostro Account (SRVA) on January 26 this year. The mechanism covers both maritime and border trade, encompassing transactions of goods and services.
The Indian Embassy in Yangon said in pnbindia. We encourage businesses from both sides to benefit from the @DoC_GoI mechanism @PiyushGoyal @MEAIndia.”
The Global New Light of Myanmar, a Myanmar-based daily, reported on May 3 that Consumer Affairs Secretary Nidhi Khare discussed the fluctuating prices of pulses with the Indian Mission in Yangon in light of the volatile exchange rates and stocks held by traders. This payment mechanism was officially announced on April 13.
Rupee and Kyat settlement mechanism can be done through Punjab National Bank when Indian traders import pulses from Myanmar.
Banks in several countries have opened special Vostro rupee accounts in Indian banks to operate in local currencies. Simply put, Vostro accounts allow national banks to provide international banking services to customers who have global banking needs.
Last year, the Reserve Bank of India launched an agreement that allows transactions in national currencies to promote the growth of global trade with emphasis on Indian exports and generate interesting interest towards the rupee.
