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RBI allows rupee accounts outside India for currency internationalization; simplifies norms for non-residents

3 weeks ago
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RBI allows rupee accounts

Picture source: Wikipedia

 

The RBI said that it will permit the opening of rupee accounts outside India by persons resident outside India (PROIs) as part of the 2024-25 strategic agenda.

 

What is PROI?

In accordance with the provisions of FEMA, 1999, as contained in Section 2 (w), “’person resident outside India’ (PROI) means a person who is not resident in India”. According to the above definition a person who is not resident in India shall be considered as PROI.

 

The Reserve Bank of India (RBI) on Thursday, May 30,2024 allowed the opening of rupee accounts outside India as part of its strategic plan to internationalize the domestic currency. The RBI said in its annual report, that it has finalised a strategic plan for 2024-25 and envisaged liberalisation of external commercial borrowing (ECB) framework and ‘Go-live’ for phase I of software platform for ECBs and trade credits reporting and approval (SPECTRA) project.

 

The RBI report further said that the rationalisation of regulations towards the internationalisation of INR was undertaken to enable the settlement of bilateral trade in local currencies.