RBI Group Recommends Measures to Boost Rupee’s International Acceptance

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RBI Group Recommends Measures to Boost Rupee’s International Acceptance.

The Reserve Bank of India (RBI) has set up a group to look at ways to boost the international acceptance of the rupee. The group has recommended a number of measures, including:

  • Allowing foreigners to hold rupee accounts in overseas branches.
  • Standardising a template for conducting trade in rupees through bilateral and multilateral trade agreements.
  • Promoting the use of the rupee in capital account transactions.
  • Making the rupee an additional settlement currency in multilateral mechanisms such as the Asian Clearing Union.

The group believes that these measures will help to make the rupee a more attractive currency for use in international trade and investment. This would have a number of benefits for the Indian economy, including:

  • It would reduce India’s reliance on the US dollar, which would make the Indian economy more resilient to external shocks.
  • It would boost India’s exports, as businesses would be more likely to trade with India if they could use the rupee.
  • It would attract more foreign investment into India, as investors would be more comfortable holding assets denominated in the rupee.

The RBI group’s recommendations are a welcome step towards making the rupee a more international currency. If these measures are implemented, they could have a significant positive impact on the Indian economy.

Boost rupee's acceptance beyond India: RBI group

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