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India and Malaysia now allowed to settle trade in Indian Rupee

01-04-2023

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India and Malaysia can now use the Indian rupee to settle trade, in addition to other currencies.

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The Reserve Bank of India allowed settlement of international trade in Indian currency in July 2022.

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The move aims to facilitate the growth of trade and support the interests of the global trading community in the Indian rupee.

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The India International Bank of Malaysia has opened a special Rupee Vostro account through its corresponding bank in India, Union Bank of India.

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The use of the Indian rupee for settlement will provide greater flexibility and convenience in trade transactions between India and Malaysia.

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The move is expected to boost bilateral trade between the two countries.

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The use of the Indian rupee is expected to help reduce transaction costs and currency risks associated with trade settlements.

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Malaysia is one of India's key trading partners in the Southeast Asia region.

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