NEW DELHI: Welcoming the new Provision, Dr A Sakthivel, President, FIEO said that in existing FEMA provisions, the final settlement has to be in free foreign exchange except for Nepal and Bhutan. Now the final settlement to all countries, if approved by RBI, can be in Indian Rupee.

This move will pave the way for trading and settlement of export-import transactions in Indian Rupee. The timely move, at a time when many countries are facing huge forex shortages in Africa and South America, allowing only exim transactions through LC will help our exporters and importers, added FIEO's Chief. This move is a recognition of the Indian rupee as an international currency. We hope, observed Dr Sakthivel, that the Government will clarify on exports benefits on such exports in Rupee, which is hitherto only granted for exports payments received in foreign currency.