New Delhi, Sept 17 (KNN) With the amendment of Foreign Trade Policy, international trade invoicing, payment and settlement is now allowed in the Indian rupee.

It activates the mechanism announced by the Reserve Bank of India (RBI) to facilitate trade in the domestic currency. 

The changes of the policy has been notified by the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry.

The central bank allowed authorised banks in India to open special rupee Vostro accounts of correspondent banks of any partner trading country to facilitate trade in the Indian currency.

Under the arrangement, Indian importers will make payment in rupees into the special Vostro account of the partner country bank against the invoices for the supply of goods or services from the overseas seller or supplier, the trade policy said.  (KNN Bureau)