RBI allows global trade settlements in Rupees

Current Context: Reserve Bank of India announced an arrangement for domestic traders to settle imports and exports in rupees.

• According to RBI, this will promote global trade growth with an emphasis on exports from India and support the increasing interest of the global trading community in the Indian Rupee.
• This move will accelerate transactions between the two countries.
• Under existing provisions of the foreign exchange management act, final settlements must be in free foreign exchange except for Nepal and Bhutan.
• The move is to help to curb demand for forex and support the Indian economy.
• Static knowledge:
• RBI governor - Shaktikanta Das
• RBI headquarters - Mumbai
• RBI was formed - on 1 April 1935