The Reserve Bank of India (RBI) has permitted overseas branches of banks to open rupee accounts for individuals residing outside India.

• According to a notification issued by RBI, individuals residing outside India will be able to settle transactions with other persons residing outside the country using balances in their rupee accounts.
• Experts believe that this move will significantly enhance the global usage of the Indian Rupee for cross-border transactions.
• Overseas branches of Authorised Dealer (AD) banks can now open rupee accounts. AD banks are those which are authorised by RBI to deal in foreign exchange transactions.