MUMBAI (Reuters) – To encourage the use of the rupee and other currencies to settle cross-border transactions, India’s central bank took steps to further liberalise regulations under the foreign exchange management act, it said in a release on Thursday.
Indian exporters will now be able to open accounts in any foreign currency overseas to settle trade transactions, including receiving export proceeds, and use these proceeds to pay for imports, the Reserve Bank of India said.
The RBI will permit overseas branches of authorised banks to open rupee-accounts for anyone residing outside the country and looking to settle all permissible current account and capital account transactions with someone residing in India.
Those residing outside the country will also be permitted to settle bona fide transactions with other non-residents by using the balance in their repatriable INR accounts.
The RBI has also allowed non-resident Indians to use such balances for foreign investments, including foreign direct investment in non-debt instruments.
(Reporting by Swati Bhat; Editing by Savio D’Souza)
