RBI MPC Meet Outcome: The RBI has proposed allowing banks to lend in Indian rupees to non-residents in Nepal, Bhutan, and Sri Lanka for cross-border trade, aiming to boost rupee-based transactions. It also plans to establish a transparent reference rate for the currencies of India’s major trading partners to facilitate such trade. Additionally, the RBI intends to expand the use of Special Rupee Vostro Account (SRVA) balances by permitting investments in corporate bonds and commercial papers, enhancing flexibility and promoting deeper integration of the rupee in regional trade.

Three Steps are:

First, permit AD banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for cross border trade transactions. Authorized Dealer (AD) banks in India will be allowed to give

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