After Russia, 35 countries show interest in INR trade settlement mechanism.
Around 35 nations express interest in better understanding rupee trade after sanctions-hit Russia begins foreign trade in rupees.
A rupee trade settlement mechanism was established by India's central bank, the Reserve Bank of India, in July 2022 to attract more foreign interest.
The rupee trade settlement mechanism in India allows transactions to be settled in INR rather than dollars or other large currencies.
There are several countries that are interested in rupee trade, including neighbors Bangladesh, Nepal and Myanmar, which have been struggling to accumulate dollar reserves.
Reports indicate Tajikistan, Cuba, Luxembourg, and Sudan are also seeking to use the mechanism.
The firm dollar has been weighing down on imports for several countries around the world in recent months, creating the urgent need for an alternative.
If the counterparty has a Rupee Vostro account, instead of paying and receiving US dollars, the countries can get the invoice of goods and services in Indian rupees.
A total of nine Indian banks have been granted permission to open 17 special vostro rupee accounts for settlement of trade with Russia.