RBI Boosts INR in Global Trade, Car Sales Surge in September
The Reserve Bank of India (RBI) is set to relax norms for external commercial borrowing, aiming to promote the use of Indian Rupee (INR) in international trade. Meanwhile, the Goods and Services Tax (GST) 2.0 and festive demand have boosted car and two-wheeler sales in September. Additionally, the Rashtriya Swayamsevak Sangh (RSS) marks its 100th anniversary.
The RBI plans to allow Authorised Dealers (AD) banks in India and their overseas branches to lend in INR to residents of Bhutan, Nepal, and Sri Lanka. This move aims to facilitate cross-border trade transactions in the mentioned jurisdictions and promote the settlement of such transactions in INR and local currencies.
The RBI's decision aligns with its broader goal of internationalising the Indian Rupee. Measures to achieve this include liberalising the capital account, promoting international usage of INR, and strengthening financial markets. The RBI seeks to make INR liquidity available and accessible to residents of other countries, thereby enhancing India's economic progress and prominence in global trade.
In other news, car and two-wheeler sales have seen a significant boost in September, thanks to the implementation of GST 2.0 and festive demand.
The RBI's decision to relax external commercial borrowing norms and promote INR in international trade is expected to strengthen India's financial landscape. Meanwhile, the automotive sector continues to thrive, with increased sales driven by GST reforms and festive demand. The RSS's centennial celebration also marks a significant milestone in the organisation's history.
