The Reserve Bank of India reported robust growth in rupee-based global trade transactions during FY26, with import settlements jumping over 41% amid ongoing INR internationalisation efforts. According to the RBI's annual report released on Friday, the rupee is being increasingly used for import and export invoicing, with the central bank noting that the INR internationalisation process has been mutually beneficial to all trading partners. The RBI highlighted that several measures have been undertaken over recent years to enhance the role of INR as an international currency through increased usage for both current and select capital account transactions. As per the latest RBI annual report, the central bank continued to focus on further developing and deepening financial markets through several initiatives, including rationalising external sector regulations for increased ease of doing business and encouraging the adoption of INR for cross border transactions.
The latest data on trade invoicing and settlement in Indian Rupee during 2025-26 exhibited significant year-on-year growth across all categories. Import settlements reached ₹1.60 lakh crore during 2025-26, compared to ₹1.13 lakh crore in 2024-25 and ₹99,680 crore in the previous year. In absolute terms, INR invoicing in imports stood at ₹2.85 lakh crore in 2025-26, up from ₹2.60 lakh crore in 2024-25 and ₹1.94 lakh crore in 2023-24. The RBI noted there has been considerable pick-up in INR-based invoicing and settlement since July 2022, with the compound annual growth rate of imports invoiced in INR at 20.9% during the period August 2022–July 2025. Going forward, the liquidity operations would continue to be in sync with the stance of monetary policy, while the foreign exchange operations would be principle-based, guided by the objective of ensuring orderly movements in the exchange rate of the INR.
Export settlements during 2025-26 were valued at ₹1.72 lakh crore, compared to ₹1.67 lakh crore in 2024-25 and ₹1.75 lakh crore in 2023-24. Invoicing for exports reached ₹3.27 lakh crore during the last fiscal, up from ₹3.07 lakh crore in 2024-25 and ₹2.87 lakh crore in 2023-24. The RBI emphasized that the ascendence of INR as an invoicing and settlement currency is likely to offer protection against exchange rate risk, reduce the requirement for maintaining costly forex reserves in convertible currencies, and provide other benefits. The use of domestic currency also facilitates the development of bilateral exchange rate markets and reduces transaction costs in foreign exchange transactions. The RBI's data shows that export invoicing grew by 6.5% and import invoicing by 9.5% during 2025-26, while export settlements increased by 2.7% and import settlements surged by 41.2% compared to the corresponding period of the previous year.
The RBI has significantly expanded its international cooperation initiatives to advance INR's cross-border role. The central bank signed a memorandum of understanding (MoU) on digital asset collaboration with the Monetary Authority of Singapore (MAS) and held bilateral discussions with MAS and the Central Bank of the UAE (CBUAE) for operationalising a cross-border CBDC pilot. The Reserve Bank also joined multilateral BIS-Innovation Hub-led initiatives, viz., Project Rialto and Phase 2 of Project Mandala, which are focused on enhancing cross-border payments through CBDCs. For promoting ease of doing business and convenience, the RBI plans to streamline the regulatory process for cross border payment authorisation under the Payment and Settlement Systems (PSS) Act, 2007 and Foreign Exchange Management Act, 1999, while examining the case for recognising small payment system providers under a perpetual regulatory sandbox structure. The Indian rupee traded with a depreciating bias during the last fiscal year amidst trade-related uncertainties, geopolitical tensions, and foreign portfolio investment outflows in the equity segment.
