INTRODUCTIONThe Reserve Bank of India (RBI) constantly monitors, supervises and regulates the foreign exchange market in India by regulating currency, securing monetary stability, maintaining currency reserves, and overseeing India’s credit and currency system. Due to the recent global events of Russia-Ukrainian conflict resulting in sanctions on major Russian banks by USA, UK and the EU from accessing the SWIFT, the impact of availability of crude oil and fear of global recession, India has been increasingly facing pressure on maintaining the Rupee stability. Further, India’s over dependence on using the US Dollar for trade settlement has its own set of challenges. In fact, dollarization of global trade has given huge advantage to USA at the cost of rest of the world. It’s time for India and other countries to start looking for alternatives to the USD.
In this context, and with an intention to promote international trade, build a healthy forex reserve, support the increasing interest of global trading community in Indian Rupees (INR), and to combat the rupee depreciation,
the RBI recently issued a Circular vide A.P. (DIR Series) Circular No.10 dated 11th July, 2022. Through this circular, RBI has introduced a new mechanism and arrangement for invoicing, payment, and settlement of exports / imports in Indian Rupees (INR). Earlier, under this RBI regulation, international trade (except for those done wit
