The Reserve Bank of India issued directions to Category-I Authorised Dealer banks allowing India’s bilateral trade transactions with the Maldives to be settled in Indian Rupees (INR) and/or Maldivian Rufiyaa (MVR), in addition to settlement through the Asian Clearing Union (ACU) mechanism. The change follows a November 2024 memorandum of understanding between the Reserve Bank of India and the Maldives Monetary Authority to promote the use of local currencies for bilateral transactions. The instructions take effect immediately and banks are expected to notify affected constituents.
Reserve Bank of India 2025-03-17
Reserve Bank of India permits Indo-Maldives trade settlement in INR and MVR alongside the Asian Clearing Union mechanism
The Reserve Bank of India has directed Category-I Authorised Dealer banks to settle bilateral trade transactions with the Maldives in Indian Rupees (INR) and Maldivian Rufiyaa (MVR), alongside the Asian Clearing Union mechanism. This follows a November 2024 agreement with the Maldives Monetary Authority to enhance local currency use in bilateral trade. The instructions are effective immediately.