Mumbai: The Reserve Bank of India (RBI) on Thursday allowed opening of rupee accounts outside India as part of its strategic action plan to internationalize the domestic currency.
Rationalization of various guidelines will be the primary focus, with emphasis on continued synchronization of the FEMA operational framework with the emerging macroeconomic environment, the central bank said in its annual report.
The RBI said it has finalized a strategic action plan for 2024-25 and the liberalization of the external commercial borrowing (ECB) framework and phase I of the Software Platform for ECB and Trade Credit Reporting Approval (SPECTRA) project. -Live is envisioned.
RBI will allow Persons Resident Outside India (PROIs) to open Rupee (INR) accounts outside India as part of the 2024-25 Agenda for Internationalization of Domestic Currency.
The report said, "INR lending to PROI by Indian banks and enabling foreign direct investment (FDI) and portfolio investment through special accounts [Special Non-Resident Rupee (SNRR) and Special Rupee Vostro Account (SRVA)] "
Rationalization of Liberalized Remittance Scheme (LRS) and review of IFSC rules under FEMA are also part of the agenda for the current financial year.
The RBI report further said that the rules have been rationalized towards promoting internationalization of the Indian rupee to enable settlement of bilateral trade in local currencies.
Going forward, it said liquidity operations will remain in line with the monetary policy stance, while forex operations will be guided by the objective of ensuring orderly fluctuations in the rupee exchange rate.
Rationalization of various guidelines will be the primary focus, with emphasis on continued synchronization of the FEMA operational framework with the emerging macroeconomic environment, the central bank said in its annual report.
The RBI said it has finalized a strategic action plan for 2024-25 and the liberalization of the external commercial borrowing (ECB) framework and phase I of the Software Platform for ECB and Trade Credit Reporting Approval (SPECTRA) project. -Live is envisioned.
RBI will allow Persons Resident Outside India (PROIs) to open Rupee (INR) accounts outside India as part of the 2024-25 Agenda for Internationalization of Domestic Currency.
The report said, "INR lending to PROI by Indian banks and enabling foreign direct investment (FDI) and portfolio investment through special accounts [Special Non-Resident Rupee (SNRR) and Special Rupee Vostro Account (SRVA)] "
Rationalization of Liberalized Remittance Scheme (LRS) and review of IFSC rules under FEMA are also part of the agenda for the current financial year.
The RBI report further said that the rules have been rationalized towards promoting internationalization of the Indian rupee to enable settlement of bilateral trade in local currencies.
Going forward, it said liquidity operations will remain in line with the monetary policy stance, while forex operations will be guided by the objective of ensuring orderly fluctuations in the rupee exchange rate.
