India’s Reserve Bank seeks approval for rupee lending to Sri Lanka
India’s central bank is taking another step to internationalise the rupee, seeking approval to allow domestic banks to lend the currency to overseas borrowers in Sri Lanka and other countries. The Reserve Bank of India (RBI) has asked the federal government to allow domestic banks and their foreign branches to lend Indian rupees to overseas borrowers to enhance the use and acceptability of the local currency in trade. The proposal, which was sent to the finance ministry last month, suggests lending in rupees to non-residents can begin in neighbouring countries such as Bangladesh, Bhutan, Nepal and Sri Lanka, the sources said. If successful, such rupee-denominated lending could be extended to cross-border transactions globally, one of the sources said. https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-1795470547300847&output=html&h=280&slotname=6280235995&adk=251595277&adf=743471279&pi=t.ma~as.6280235995&w=696&abgtt=7&fwrn=4&fwrnh=100&lmt=1748308625&rafmt=1&format=696×280&url=https%3A%2F%2Fcolombogazette.com%2F2025%2F05%2F26%2Findias-reserve-bank-seeks-approval-for-rupee-lending-to-sri-lanka%2F&host=ca-host-pub-2644536267352236&fwr=0&fwrattr=true&rpe=1&resp_fmts=3&wgl=1&uach=WyJXaW5kb3dzIiwiMTkuMC4wIiwieDg2IiwiIiwiMTM2LjAuMzI0MC45MiIsbnVsbCwwLG51bGwsIjY0IixbWyJDaHJvbWl1bSIsIjEzNi4wLjcxMDMuMTEzIl0sWyJNaWNyb3NvZnQgRWRnZSIsIjEzNi4wLjMyNDAuOTIiXSxbIk5vdC5BL0JyYW5kIiwiOTkuMC4wLjAiXV0sMF0.&dt=1748310564331&bpp=1&bdt=316&idt=130&shv=r20250521&mjsv=m202505220101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D414febda410ef934%3AT%3D1742430699%3ART%3D1748310533%3AS%3DALNI_Ma7nbxI7Wzm1_v9KIYMOpvoUUfBGQ&gpic=UID%3D0000106a38e7c116%3AT%3D1742430699%3ART%3D1748310533%3AS%3DALNI_MbJZ_ucfDLFwNpO35KtETIEYRnQeA&eo_id_str=ID%3D230d7c9ba290e8d0%3AT%3D1742430699%3ART%3D1748310533%3AS%3DAA-AfjZmx4pB-oXviON6EZgFU5eb&prev_fmts=0x0%2C696x280%2C696x280&nras=1&correlator=3217611507509&frm=20&pv=1&u_tz=330&u_his=1&u_h=864&u_w=1536&u_ah=816&u_aw=1536&u_cd=24&u_sd=1.25&dmc=8&adx=222&ady=1878&biw=1513&bih=708&scr_x=0&scr_y=0&eid=31092617%2C95353387%2C95360813%2C31092656%2C95361622%2C95360953%2C95360683&oid=2&pvsid=2142780534278016&tmod=1270908148&uas=0&nvt=1&ref=https%3A%2F%2Fcolombogazette.com%2F&fc=1920&brdim=0%2C0%2C0%2C0%2C1536%2C0%2C1536%2C816%2C1528%2C708&vis=1&rsz=%7C%7CoeEbr%7C&abl=CS&pfx=0&fu=128&bc=31&bz=1.01&td=1&tdf=2&psd=W251bGwsbnVsbCxudWxsLDNd&nt=1&pgls=CAEQBBoHMS4xNTMuMA..&ifi=4&uci=a!4&btvi=1&fsb=1&dtd=134 According to Ministry of Commerce data,…