Reserve Bank Of India, vide its circular no. “A.P.(DIR Series) Circular no. 10, dated July 11,  2022 have permitted “ International Trade Settlement in Indian Rupees (INR)”  for invoicing, payment, and settlement of exports  / imports in INR.

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 The broad framework for cross border trade transactions in INR under Foreign Exchange Management Act, 1999 (FEMA) is as delineated below:

(a) Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).

(b) Exchange Rate: Exchange rate between the currencies of the two trading partner countries may be market determined.

(c) Settlement: The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.

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For details, please refer am circular of RBI or please contact us for further professional assistance on this matter.