RBI's new rules make it easier to trade in rupees
On October 1, 2025, the Reserve Bank of India (RBI) announced new rules to help the Indian rupee play a bigger role in international trade and attract more foreign investment.
The idea? Make it easier for other countries and investors to use—and trust—the rupee.
Banks can now lend rupees directly for trade
Indian banks (and their overseas branches) can now lend rupees directly for trade with Bhutan, Nepal, and Sri Lanka.
This means businesses in these countries get simpler access to rupees, making cross-border deals smoother for everyone involved.
What else is changing?
The RBI will set reference rates for currencies like the Indonesian rupiah and UAE dirham, so trading partners know exactly what they're getting—no surprises on conversion costs.
Plus, foreign banks holding rupees in SRVAs can now invest those funds in Indian corporate bonds or commercial papers, opening fresh opportunities for global investors interested in India's growth story.