The Indian rupee, in addition to other currencies, can now be used to settle trade between India and Malaysia, according to the Ministry of Foreign Affairs (MEA) on Saturday.
The move follows the Central Bank of India's decision in July last year to allow overseas transactions to be settled in Indian currency.
According to the MEA, trade between India and Malaysia can now be settled in Indian Rupees (INR) in addition to the present forms of settlement in other currencies.
This follows the Reserve Bank of India's decision in July 2022 to allow overseas transactions to be settled in Indian rupees," it stated in a statement.
According to the MEA, the RBI's program is aimed at boosting trade growth and supporting global interests.
However, India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalized this mechanism by opening a special Rupee Vostro account through its corresponding bank in India that is Union Bank of India," it stated.
