Aiming to internationalize the national currency, the Reserve Bank of India (RBI) on Thursday permitted the creation of rupee accounts outside of the country.  Rationalization of different guidelines would be the key priority, with an emphasis on continual synchronization of the FEMA operational framework with the growing macroeconomic situation, the central bank stated in its annual report.

The RBI announced that it has completed a strategic action plan for 2024–2025, which includes plans to liberalize the framework for external commercial borrowing (ECBs) and "go live" for the first phase of the SPECTRA project — a software platform for ECBs and trade credits reporting and approval. In line with the 2024–25 plan for internationalization of the Indian currency, the RBI will allow persons residing outside of India (PROIs) to open rupee (INR) accounts outside of India.

"INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," stated the study.

The agenda items for the current fiscal year also include rationalizing the Liberalized Remittance Scheme (LRS) and reviewing the IFSC regulations under FEMA. 

The RBI study also stated that in order to facilitate the settlement of bilateral commerce in local currencies, restrictions were rationalized with the goal of encouraging the internationalization of the INR. 

Moving ahead, it stated that the foreign exchange operations would be directed by the goal of guaranteeing orderly changes in the rupee's exchange rate, while the liquidity operations would stay in line with the attitude of the monetary policy.