India is at the centre of global trade discussions after reports suggested that the Reserve Bank of India (RBI) had issued a circular enabling BRICS nations to settle 100 per cent of their trade in Indian Rupees (INR). Analysts argued that such a shift could weaken the US dollar’s dominance in international trade and strengthen BRICS’ collective bargaining power.
Though there is no such official mandate for BRICS to conduct all trade in rupees. Instead, several outlets noted that the RBI has relaxed norms by allowing banks to open Special Rupee Vostro Accounts (SRVAs) without prior approval, a move aimed at promoting INR-based trade at a time when US tariff measures continue to create uncertainty for BRICS countries.
The latest circular, issued on August 5, 2025, builds on an earlier framework introduced on July 11, 2022, under which exports and imports can be directly invoiced and settled in INR. Exchange rates between partner countries are to be determined by market forces, giving greater flexibility to traders.
Reports in The Economic Times and BusinessLine confirmed that the RBI had “tweaked” its rules, removing the requirement for prior approval when banks open SRVAs for correspondent banks. However, the central bank has clarified that banks must still comply with all norms under the Foreign Exchange Management Act (FEMA) and continue strict due diligence in line with KYC standards.
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