
A senior trade and investment official has called India’s latest rupee trade reform a “game changer” that will deepen economic ties between UAE and India. He predicted that non-oil trade would cross the $100 billion mark well before 2030, a figure he said looked unthinkable until just a few years ago. He noted that the move will not only benefit large corporations but also open fresh opportunities for small and medium-sized enterprises on both sides.
On August 5, the Reserve Bank of India (RBI) declared that Indian Category-I Authorized Dealer (AD) banks no longer require previous RBI clearance to create Special Rupee Vostro Accounts (SRVAs) for international banks with which they already have correspondent ties.
A special account known as an SRVA enables international banks to hold Indian rupees and handle payments related to commerce with India. Prior permission was required up until this point. The action, according to industry analysts, eliminates a long-standing obstacle to local currency settlement.
Indian business executives located in the United Arab Emirates have praised the measure, claiming it will reduce expenses, expedite transactions, and fortify the trade route between the two nations.
Alhind Group Chairman Mohamed Haris hailed it as a move in the right direction toward bolstering international trade. Businesses on both sides would profit from the decision, he added, as it will simplify and expedite transactions between India and the UAE.
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