RBI allows Rupee accounts outside India in an effort to boost rupee internationalisation

Here’s some good news for NRIs. The Reserve Bank of India on Thursday announced that it will permit the opening of rupee accounts outside India.

This move is part of the central bank’s strategic plan to internationalize the Rupee.

In its annual report, RBI also emphasized the need to continually update the Foreign Exchange Management Act operating framework to align with the evolving macroeconomic environment.

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"INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," the report said.

Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year.

The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies.