Trade settlement in rupee: Govt, RBI devise country-specific plan

The central government and the Reserve Bank of India have devised a country-specific plan towards implementation of overseas trade in rupee, people aware of the matter said.

To start with, a small number of banks will be allowed to manage cross-border transactions in domestic currency with a particular country.

“Small countries that are dollar-deficient have shown interest in doing trade in rupee. There were discussions regarding making the rupee trade (mechanism) bank and country-specific. UCO Bank and IndusInd Bank may deal with Russia. Similarly, Punjab National Bank may lead in the case of trade with Myanmar. Other banks can also