Foreign Trade Policy Amendment : Good news is coming for Indian Importers. Now international trade can be done in rupees. Let us tell you that the Ministry of Commerce has approved International Trade Settlement in Indian currency i.e. Rupee.
changes to the rules
Changes have been made in the rules under the Foreign Trade Policy by the Ministry of Commerce. After which all types of billing, payment and export-import settlement will be done in rupees under the new rule. These changes have been made according to the circular of Reserve Bank of India. In this regard, DGFT i.e. Directorate General of Foreign Trade has issued a notification.
Ministry approved
Let us tell you that in the month of July 2022, the Reserve Bank of India had asked banks to make arrangements to do export and import transactions in rupees. RBI had proposed to start this facility in view of the increasing interest of the global business community towards the Indian currency. According to this decision of RBI, the Directorate General of Foreign Trade (DGFT), constituted under the Ministry of Commerce, has now added a new paragraph in the Foreign Trade Policy (FTP).
Vostro account has to be opened
DGFT in a notification said that in pursuance of RBI’s circular dated July 11, 2022, paragraph 2.52 (d) has been notified which allows settlement, bill generation and payment of import-export transactions in Indian Rupee. Is. After the issuance of this notification, now business deals can be settled in Indian Rupees as well. For this, it will be necessary to open special Vostro accounts by authorized dealer banks in India.
Now suppliers will get money in their account
In September itself, the RBI and the Commerce Ministry had asked the top management of the country’s major banks and representatives of trade bodies to promote transactions in rupees. After which now the Indian importer has got its approval. With this arrangement, they will get the payment of their imports in Indian Rupees. To take this amount, a special Vostro account has to be opened in the country’s bank, in which the money will be deposited. It is known that this amount will be deposited against the bills given for the supply of goods or services to the foreign suppliers.
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