FEMA and INR Internationalization: What’s New in 2025?

FEMA, 1999, facilitates INR trade settlements through vostro accounts, reducing forex conversion costs.

FEMA, 1999, supports INR internationalization, enabling trade settlements in INR with 18 countries like UAE and Russia. RBI’s vostro accounts reduce forex conversion costs by 5–7%, benefiting exporters. FEMA’s Master Direction 8/2024 allows banks to open these accounts for foreign partners, ensuring faster settlements and lower USD volatility risks.

• Challenges include limited global INR acceptance, so pair with LCs for security.

• Indian banks like SBI facilitate INR trade, a growing trend in 2025.

• Learn how to leverage INR settlements with our Udemy course on FEMA strategies.