Internationalisation of INR - 2
The Reserve Bank of India constituted an Inter Departmental Group (IDG) in December 2021 “To examine issues related to Internationalisation of INR and suggest a way forward”. The Group submitted its recommendations in October 2022; and the same have been made public last week. The following are some of the highlights of the IDG recommendations. Terms of References The terms of reference of the IDG were as follows - · To review the extant framework for use of INR for current and capital account transactions and assess their current levels; · To review the extant position of use of INR for transactions between non-residents and the role of off-shore markets in this regard; · To propose measures, consistent with the desirable degree of capital account liberalization, to generate incentives for use of INR for trade...