Centre, RBI devise plan specific to countries

The central government and the Reserve Bank of India have devised a country-specific plan towards implementation of overseas trade in rupee, people aware of the matter said.

- SHREYA NANDI

To start with, a small number of banks will be allowed to manage cross-border transactions in domestic currency with a particular country.

"Small countries that are dollar-deficient have shown interest in doing trade in rupee. There were discussions regarding making the rupee trade (mechanism) bank and country-specific. UCO Bank and IndusInd Bank may deal with Russia. Similarly, Punjab National Bank may lead in the case of trade with Myanmar. Other banks can also join later, once the system kicks in. More banks can seek RBI's approval once the system stabilises," one of the persons cited above said.

Emails sent to UCO Bank, IndusInd Bank, and Punjab National Bank remained unanswered till press time.