Question
Recently the commerce ministry allowed invoicing,
payment and settlement of exports and imports in which of the following currency?Solution
The commerce ministry allowed invoicing, payment and settlement of exports and imports in Indian rupee, a move aimed at facilitating trade in the domestic currency. To align the Foreign Trade Policy (FTP) with this decision of the RBI, the Directorate General of Foreign Trade (DGFT) added a new paragraph in the FTP. As per the new para(Para 2.52 (d)), Indian importers undertaking imports through this mechanism will make payment in INR which will be credited into the special vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller/supplier.
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