Neighbours, Russia can help convert 16.38% of India's trade into rupees

The rupee's use in trade settlement would help the RBI in conserving foreign exchange. India's forex reserves have fallen by more than Rs 1 trillion since the outbreak of the Russia-Ukraine war

The Reserve Bank of India (RBI) introduced on Monday a mechanism to settle international payments in rupee. India could convert 16.38 per cent of its total trade from US dollars into rupees if its neighbours (excluding Pakistan) and Russia, which is under Western sanctions, follow the central bank’s policy, according to analysis of Ministry of Commerce's data. India's total trade volume with the world stood at Rs 77.15 trillion in FY22. 

Rupee’s use in trade settlement would help the RBI in conserving foreign exchange. India's forex reserves have fallen by more than Rs 1 trillion since the outbreak