RBI signs MoU with Maldives to promote local currency cross border payment
This story was originally published at 20:01 IST on 21 November 2024
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--RBI signs MoU with Maldives to promote local currency cross border payment
MUMBAI – The Reserve Bank of India Thursday signed a memorandum of understanding with the Maldives Monetary Authority to promote the use of local currencies – the Indian Rupee and the Maldivian Rufiyaa – for cross-border payments, it said in a press release. "The MoU encourages the use of INR and MVR in current account transactions, permissible capital account transactions and any other economic and financial transactions as agreed upon by both countries," the regulator said in the release.
The agreement will allow traders of both the countries to make settlements in their respective domestic currencies, which will boost the foreign exchange market and play a key role in optimising costs and time for transactions, the release said. The regulator further said the collaboration would help in strengthening bilateral cooperation between both the regulatory bodies.
"(The) Use of local currencies in bilateral transactions will eventually contribute to promoting trade between India and Maldives as well as deepen financial integration and strengthen the economic relations between India and Maldives," the regulator said.
In March, RBI and Bank Indonesia had signed a memorandum of understanding to set up a framework to promote their respective local currencies for cross-border transactions. End
Reported by Christina Titus
Edited by Avishek Dutta
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