Indian rupee in cross-border trade

The South Asian economies have all the reasons to make the most of India’s new monetary policy.

India’s unwavering commitment to finding a smoother mechanism for cross-border payment settlements in the neighbourhood will now make it possible to lend Indian rupees (INR) to non-residents in Bhutan, Nepal, and Sri Lanka for bilateral trade. A path-breaking initiative of the Reserve Bank of India (RBI) announced during its Monetary Policy Committee (MPC) meeting held on October 1 should pave the way for a simplified trade regime, more so with Nepal, considering its existing complex cross-border payment options for bilateral trade with India and upfront challenges for working capital in the wake of latest political developments in the country.