MUMBAI : Reserve Bank of India (RBI) Governor Shaktikanta Das has said rupee settlement for cross-border trade has huge potential and added that the central bank has initiated talks with some nations in South Asia to facilitate such trade.
“We are already in discussions with some of the countries in this region to facilitate rupee settlement of cross-border trade in the South Asian region. So, that can be another area which has a very big potential in the years to come,” he said.
Das was speaking at an event organised by the International Monetary Fund (IMF) in New Delhi.
Other than rupee settlement, RBI is also keen on linking of UPI for cross-border transactions, the RBI governor said, adding that India has already signed agreements with the neighbouring countries of Nepal and Bhutan.
Going ahead, the recently launched the central bank digital currency (CBDC) can also be explored for cross-border transactions, Das added. However, RBI will move cautiously in allowing CBDC for use in cross-border transactions as risks of cloning may arise, he said.
