On 30th May, 2024, the Reserve Bank of India (RBI) allowed the opening of rupee accounts outside India as part of its strategic plan to internationalize the domestic currency.
The Central Bank stated in its annual report that the rationalization of various guidelines would be the main priority, with an emphasis on continual synchronization of the FEMA operating framework with the growing macroeconomic situation.
The RBI announced that it has completed a strategic action plan for 2024–2025 and envisaged liberalization of the framework for external commercial borrowing (ECBs) and “go live” for the first phase of a software platform for ECBs and trade credits reporting and approval (SPECTRA) project.
The RBI report said, “INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts for special nonresident rupee (SNRR) and special rupee vostro account (SRVA).”
For the present financial year, rationalization of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda.