New Delhi, July 15 (KNN) The Reserve Bank of India (RBI) will soon release comprehensive guidelines to address the challenges faced by businesses when engaging in trade with other countries using the local currency, a senior official said on Friday.

These guidelines aim to streamline the documentation process for banks, facilitating smoother transactions and fostering increased trade opportunities.

“There were some initial teething troubles with regard to the rupee trading mechanism, but in many of these areas, the transactions have started happening. Some exporters had approached us regarding the problems faced in documentation and we had taken up the issue with the Reserve Bank of India,” the official said.

“The RBI is in the process of issuing a liberal Standard Operating Procedure (SOP) to all the banks so that e-BRC (electronic bank realisation certificate) becomes smooth. The SOP is expected in the next 2-3 days,” he added.

However, the official said that there are constraint associated with rupee trade is that it functions solely as a barter currency and lacks international recognition. When engaging in rupee trade, it is essential to ensure trade equilibrium.

July 2022, the RBI implemented a policy permitting the use of Indian rupees for invoicing and payments in international trade. 

Subsequently, the RBI has granted permission to banks from 18 countries to establish Special Vostro Accounts, dedicated to facilitating settlements for this specific purpose.  (KNN Bureau)