The Reserve Bank of India (RBI) has announced that trade transactions with regional countries, including Sri Lanka, Nepal, and Bhutan, can now be conducted in Indian Rupees (INR).
According to Indian media reports, the decision extends not only to bilateral trade but also to credit facilities provided to these countries, which will now be denominated in Indian Rupees.
The RBI stated that this initiative is aimed at reducing dependence on the US Dollar in regional trade and promoting greater financial integration with neighboring economies.
In addition, the central bank has also decided to introduce an official exchange rate for its major trading partners to facilitate smoother transactions.
