The finance ministry on Wednesday will hold a meeting with all stakeholders, including banks and officials from the ministries of foreign affairs and commerce, to discuss ways to promote cross-border trade in rupee instead of the US dollar. The meeting, to be chaired by Financial Services Secretary Sanjay Malhotra, is expected to see the presence of representatives of reserve Bank of India, Different and industry bodies.

Sources said banks will be asked to promote it by asking exporters to negotiate rupee trade.

reserve Bank of India In July, a detailed circular was issued asking banks to make additional arrangements for export and import transactions in Indian rupees in view of the growing interest of the global trading community in the domestic currency.

The announcement by the Reserve Bank of India (RBI) to allow cross-border trade transactions in rupee is a timely step and a step towards internationalization of the currency.

Currently, a major part of the bilateral trade between India and Russia is settled in rupees due to sanctions imposed by the US and Europe after Moscow’s attack on Ukraine.

RBI had said that for settlement of business transactions, the respective banks would be required to Special Rupee Your Account of the correspondent bank/s of the participating trading country.

“Indian importers importing through this mechanism shall make payment in INR, which shall be credited to the special Vostro account of the correspondent bank of the partner country against the invoice for supply of goods or services from the foreign seller/supplier,” it had said. .

Exporters, who undertake overseas shipments of goods and services through this mechanism, shall be paid export proceeds in Indian Rupees from the balance in the specified Special Vostro Account.

As per the circular, the rupee surplus balance held can be used for permissible capital and current account transactions as per mutual agreement.