RBI Governor asserts the necessity of exceeding the US Dollar to Indian Rupee trading channel
The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, has commended the Clearing Corporation of India Limited (CCIL) for its foray into the International Financial Services Centre (IFSC), during an event marking CCIL's 25th anniversary.
Malhotra emphasised the evolving vision for the internationalisation of the rupee, which moves decisively beyond the traditional USD-INR corridor. He highlighted the importance of readiness for new interest rate derivatives and products that meet and anticipate market demand, as part of the broader objective of internationalising the rupee.
In line with this vision, India has signed memoranda of understanding towards local currency settlement with the Maldives and Mauritius. The RBI governor also urged CCIL to develop infrastructure for multi-currency trading of the rupee, enabling trading and settlement of the rupee against a wider basket of currencies.
The RBI governor noted that the retail-led approach is not just about inclusion; it's about embedding the rupee into the fabric of global financial flows. He expressed that expanding the reach of platforms like Forex Retail and RBI Retail Direct to corporates, non-residents, and global investors could unlock deeper market liquidity and operational efficiencies.
India has achieved significant milestones in this regard, with government securities being traded anonymously on electronic platforms with real-time trade data dissemination. The RBI governor also commended the country's robust trade repository, established ahead of G20 mandates.
In another development, PhonePe has secured the RBI's final nod to operate as an online payment aggregator. Starting from November, CSS funds are expected to be routed via the RBI.
While the country with which India signed a local currency debt settlement agreement in November 2024 and March 2025 is not mentioned in the provided search results, it marks another step towards India's growing trade and investment linkages across Asia, Africa, and Europe.
The RBI governor concluded by urging CCIL to continue expanding and refining services offered in the IFSC, as India moves towards a more integrated role in the global financial landscape.
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