The Reserve Bank of India (RBI) proposes to allow banks to act in Indian rupees (INR) to people in Bhutan, Nepal and Sri Lanka in India in India and their overseas branches, including a bank in these jurisdictions.
The aforementioned step is aimed at promoting the settlement of cross -border transactions in the Indian rupee (INR) and local currencies as part of RBI’s general efforts to internationalize the domestic currency.
In this respect, the Central Bank noted that he was gradually liberalized the regulations under the law for currency brois management.
“To further this initiative, it is essential that INR -Liquidity is made available and accessible to residents of other countries.
“As a calibrated step in this direction, it has been decided that advertising banks in India and their overseas branches may be allowed to borrow in INR to persons who are in Bhutan, Nepal and Sri Lanka, including a bank in these areas of law, to facilitate cross border trade transactions,” said RBI.
According to an interdepartmental group report from the RBI, INR has the potential to become an internationalized currency, because India is one of the fastest growing countries and has shown a remarkable resilience, even in the light of great headwind.
Furthermore, India has made significant progress in terms of convertitibility of capital account, global integration of value chain, setting up GiftAust, etc.
According to the report, the higher use of Inr in invoicing and settlement of international trade, as well as in capital account transactions, will give an ever -international presence.
The IDG noted that the internationalization of a currency is also closely linked to the economic progress of the nation, in particular the fame in world trade.
The measures for promoting the internationalization of INR would step in the context of Parallelly liberalizing the capital account, promoting international use of INR and strengthening the financial markets.
Published on October 1, 2025
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