What does trade in Indian Rupees mean?
Answer: Trade in Indian Rupees (INR) means settling international export and import transactions directly in rupees instead of converting payments into US dollars or other foreign currencies.

Has India officially mandated BRICS nations to trade only in rupees?
Answer: No. While the Reserve Bank of India (RBI) has simplified the use of Special Rupee Vostro Accounts (SRVAs) for rupee trade, there is no official mandate requiring BRICS nations to trade exclusively in rupees.

What are Special Rupee Vostro Accounts (SRVAs)?
Answer: SRVAs are designated accounts maintained by foreign banks with Indian banks, allowing trade settlements in Indian Rupees for exports and imports between India and partner countries.

Is this move part of India’s plan to replace the US dollar?
Answer: No. The Ministry of External Affairs (MEA) clarified that de-dollarisation is not part of India’s financial agenda. Instead, India aims to diversify trade mechanisms and reduce dependency on a single currency.

Why is India promoting trade in Indian Rupees now?
Answer: India is expanding rupee trade settlements to reduce transaction costs, strengthen the rupee globally, and mitigate risks from US tariffs and currency fluctuations.

Which countries are currently trading with India in rupees?
Answer: Apart from BRICS members, countries like Russia, the UAE, and Maldives have signed agreements with India to settle trade transactions in rupees through SRVAs.

Does this mean the US dollar will lose dominance in global trade?
Answer: Not immediately. The US dollar remains the dominant global currency, but India’s move signals a gradual shift toward currency diversification and broader acceptance of local currencies in trade.