Mumbai: The rupee's use for invoicing and settlement of international trade saw only modest growth in the last two fiscal years, the central bank's annual report showed, reflecting the ground India needs to further cover to internationalise its currency in a global trading order still dominated by the US dollar.Former RBI Deputy Governor, T Rabi Sankar, had said in October 2025 that invoicing and settling trade in rupees was a key step towards India's ambition of becoming a developed economy.AgenciesCurrency movesTo encourage greater use of the rupee in cross-border trade, the RBI has introduced measures such as permitting correspondent banks in partner countries to open Special Rupee Vostro Accounts with Indian banks, alongside local currency settlement arrangements with several countries.
RBI efforts boost rupee usage, yet global adoption remains limited
Despite RBI's efforts to boost rupee usage in international trade, including Special Rupee Vostro Accounts, its adoption for invoicing and settlement saw only modest growth over the past two fiscal years. This highlights the significant ground India must cover to internationalize its currency in a dollar-dominated global trading order.
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