How RBI's Rupee Settlement System will promote India's global trade I Explained
The Reserve Bank of India has unveiled a rupee settlement system for international trade. The new mechanism has been set up to settle trade transactions in rupees. The central bank’s move is all set to promote the growth of global trade in India and will support increasing global interest in the rupee. The big move comes amid increasing pressure on the Indian currency in the wake of Russia’s invasion of Ukraine. Moreover, the move will also allow India to bypass certain orders that prevent the use of a global currency such as the US dollar for trade with certain countries. For instance, Russia's attack on Ukraine has seen several countries impose sanctions on the former, with the US cutting off Russia’s access to the dollar. This alternative mode of payment will be a big boost for Indian imports. Watch this report to know more.