India and Tanzania have received approval from the Reserve Bank of India (RBI) to utilize their respective national currencies for settling bilateral trade.

• By employing their own currencies, the countries can expect a reduction in transaction costs, an improvement in cross-border trade efficiency, and an increase in trade volume, resulting in greater economic collaboration.
• Authorized banks in India and Tanzania will open Special Rupee Vostro Accounts (SRVAs) for bilateral trade settlement, following approval from the Reserve Bank of India.
• Bank of Baroda has received approval to establish SRVAs in 18 countries, including Tanzania. Under the agreement, Indian importers will pay INR, which will be deposited into the correspondent bank's designated Special Vostro account.