RBI Report
Rupee trade sees double-digit growth in invoicing since launch
This story was originally published at 19:28 IST on 29 May 2026
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--RBI: Local currency settlement to up rupee-based cross-border transactions
--RBI: Export settlement in INR up 2.7% YoY, import settlement up 41% YoY FY26
--RBI: Export invoicing in INR up 6.5% YoY, import invoicing up 9.5% YoY FY26
--RBI: To aid INR internationalisation via operationalising Global SFMS Hub
--CONTEXT: Global SFMS Hub is RBI's cross border messaging system
--RBI: To link UAE's fincl messaging system with Global SFMS Hub in FY27
NEW DELHI – The use of the Indian rupee as an invoicing and settlement currency is picking up, with Reserve Bank of India's data showing export and import invoicing growing at a double-digit compound annual growth rate since the framework was introduced in July 2022.
"There has been a considerable pick up in INR-based invoicing and settlement since July 2022," the RBI said. In July 2022, the central bank announced measures to increase the use of the Indian currency in foreign trade, allowing exports and imports between two trading partner countries to be invoiced and settled in rupees. During the period August 2022-July 2025, compound annual growth rate of imports and exports invoiced in rupee had been 20.9% and 12.7%, respectively, it said.
Invoicing of India's exports in rupee rose 6.5% on year to INR 3.27 trillion while import invoicing in rupee rose 9.5% on year to INR 2.85 trilllion in 2025-26 (Apr-Mar), data released Friday by the RBI in its Annual Report for FY26 showed. Export settlement in rupee rose 2.7% on year to INR 1.72 trillion while import settlement rose 41.2% on year to INR 1.60 trillion in FY26.
As of May 2026, India has entered into local currency arrangements with four jurisdictions – the United Arab Emirates, Indonesia, the Maldives, and Mauritius, and special rupee vostro accounts have been opened by correspondent banks in 35 partner countries, the RBI said.
"The ascendence of INR as an invoicing and settlement currency is likely to offer protection against exchange rate risk, reduce requirement for maintaining costly forex reserves in convertible currencies, facilitate the development of bilateral exchange rate markets and contain transaction cost in foreign exchange transactions," the RBI said.
For further internationalisation of the rupee and facilitate cross-border payments in local currencies, the RBI has developed Global SFMS Hub--a cross-border messaging system, built on globally accepted ISO 20022 standards. It said that bilateral collaborations are underway with the UAE for interlinking their financial messaging systems with Global SFMS Hub and further steps will be taken to increase its adoption by onboarding more domestic and foreign participants. End
Reported by Pratiksha
Edited by Akul Nishant Akhoury
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