The Reserve Bank of India (RBI) is making significant strides towards establishing the Indian Rupee (INR) as a stronger global currency. On October 1st, 2025, the central bank unveiled a series of forward-thinking measures aimed at accelerating the Rupee’s international adoption and streamlining cross-border financial activities.
A key announcement from RBI Governor Sanjay Malhotra allows banks to extend loans in Indian Rupees to non-residents from Bhutan, Nepal, and Sri Lanka. This move is specifically tailored to facilitate bilateral trade transactions, directly encouraging and expanding the global utility of the INR within its immediate neighborhood.
Furthermore, Governor Malhotra highlighted plans to establish transparent reference rates for the currencies of India’s major trading partners. This initiative is expected to significantly enhance the ease and predictability of INR-based cross-border transactions, reducing complexities and fostering greater trust.
In a strategic expansion, the RBI also broadened the scope of Special Rupee Vostro Accounts (SRVA). This crucial step now permits funds held in SRVA accounts to be invested in corporate bonds and commercial papers. This not only provides more avenues for utilizing the Rupee internationally but also deepens the financial infrastructure supporting its internationalization, making the INR a more attractive option for global investors and traders alike.