India’s Rupee Goes Global: 22 Nations Join Currency Settlement Plan

Reserve Bank of India (RBI) has given a big boost to the Indian rupee’s global journey. It has permitted banks from 22 countries to open Special Vostro Rupee Accounts (SVRA). This will allow international trade settlements to be done directly in Indian rupees, reducing dependence on the US dollar.

The countries on the list include Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana, Israel, Kazakhstan, Kenya, Malaysia, Maldives, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.

So far, Russia, Sri Lanka, and Mauritius have already opened such accounts, while more than a dozen other nations are in the process. This move means when India trades with these countries, payments can be settled in rupees instead of dollars.

Experts say this will help slow the outflow of dollars from India and give the rupee slightly more strength against foreign currencies. While the impact on depreciation will be limited in the short term, it is still a strong and confident step for India.

In these times, when very few countries dare to bypass the dollar in trade, India’s initiative shows vision and self-belief. It’s just the beginning — but a promising one.