Since starting oil trade settlement with sanctions-hit Russia in the rupee, India has granted approval for trade settlement in the local currency to 18 countries.

The Reserve Bank of India has granted approvals to domestic and foreign authorised dealer banks in 60 cases for the opening the special rupee vostro accounts of correspondent banks from 18 countries, Bhagwat Karad, minister of state for finance, said in response to a parliamentary query.

The countries include Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, the Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.

Procedures to facilitate trade in the rupee, FAQs, and framework guidelines have already been put out by the central bank, Karad said.

BQ had reported that rupee trade had initially begun with Russia, which was facing sanctions in the aftermath of its invasion of Ukraine. Soon, other countries that were forex strapped or had issues with the U.S. dollar and euro mobilisation showed interest.

The RBI had allowed rupee trade with an emphasis on exports from India and support for INR trading interests last year. Arrangements were put in place for invoicing, payment, and settlement of exports and imports in the local currency. Prior to this, authorised dealer banks needed to get approval from the Foreign Exchange Department of the RBI.