RBI Issues Report of the ‘Inter-Departmental Group (IDG)’ on Internationalization of INR

Press Release: 2023-2024/539, Dated: 05.07.2023

An Inter-Departmental Group (IDG) was formed by the RBI with the objective of reviewing the extant position of the INR as an international currency and developing a roadmap for the internationalisation of INR. The RBI has now placed the report of IDG on its website.

In the short run, the IDG recommends the following –

Adopting a standardised approach for examining the proposals on bilateral and multilateral trade arrangements for invoicing, settlement and payment in INR and local currencies.

Making efforts to enable INR as an additional settlement currency in existing multilateral mechanisms such as ACU.

Integrating Indian payment systems with those of other countries for cross-border transactions.

Providing equitable incentives to exporters for INR trade settlement.

In the long run, the IDG recommends making efforts to include the INR in IMF’s Special Drawing Rights (SDR) basket. Further, the report and its recommendations reflect the views of the IDG and do not in any way reflect the official position of the RBI.

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