New Delhi: The Reserve Bank of India (RBI) has announced that it will now allow the opening of rupee accounts outside India. This move, announced on Thursday, is a part of the central bank’s plan to internationalise the domestic currency.
In its annual report, the RBI stressed the need to line up the Foreign Exchange Management Act (FEMA) framework with the changing macroeconomic environment and informed that rationalising various guidelines would be a primary focus.
The RBI plans to ease the rules for external commercial borrowing (ECB) as a part of its strategic action plan for 2024-25, and launch the first phase of the SPECTRA project, a software platform for reporting and approving ECBs and trade credits. This includes allowing people outside India (PROIs) to open rupee accounts abroad.
