The Directorate General of Foreign Trade (DGFT) of the Ministry of Commerce and Industry has notified the changes to the policy.
The central bank has authorized authorized banks in India to open special Vostro rupee accounts of correspondent banks of any partner trading country to facilitate trading in the Indian currency.
Under the arrangement, Indian importers will make payment in rupees to the Vostro special account of the partner country’s bank against invoices for the supply of goods or services from the foreign seller or supplier, as per the trade policy.
“Indian exporters who undertake exports of goods and services through this mechanism will receive the export proceeds in Indian rupees from the designated Vostro special account balances of the correspondent bank in the partner country,” it said. -he adds.
Finance Minister Nirmala Sitharaman held a meeting last week to discuss the rupee swap plan and asked banks to speed up the process of opening special Vostro rupee accounts.
The Commerce Department has also been asked to reach out to merchants to encourage them to take this route.