International Trade Settlement in India Rupees

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.... community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. * Prior Approval:- Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, Central Office at Mumbai. Broad framework for cross border trade transactions in INR * The broad framework for cross border trade transactions in INR under Foreign Exchange Management Act, 1999 (FEMA) is as delineated below: * Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR). * Exchange Rate: Exchange rate between the currencies of the two trading partner countries may be m....

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....shall be subject to usual documentation and reporting requirements. * Letter of Credit (LC) and other trade related documentation may be decided mutually between banks of the partner trading countries under the overall framework of Uniform Customs and Practice for Documentary Credits (UCPDC) and incoterms. Exchange of messages in safe, secure, and efficient way may be agreed mutually between the banks of partner countries. Advance against exports * Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism. Before allowing any such receipt of advance payment against exports, Indian Banks shall ensure that available funds in these accounts are first us....