• Internationalization of Rupee will facilitate greater degree of integration of Indian economy with rest of the world in terms of foreign trade and international capital flows.

• Key benefits of internationalization of Rupee include

• Savings on foreign exchange transactions for Indian residents

• Reduced foreign exchange exposure for Indian corporate

• Reduction in dependence on foreign exchange reserves for balance of payment stability etc.

• One of the important drivers for internationalization of a currency is the country’s share in global merchandise and commercial services trade.

• India’s percentage share in the global trade is still on the lower side and it limits the pricing ability of domestic businesses in Indian Rupee.

• Moreover, the share of Indian Rupee in the Global foreign exchange market turnover at present is also very low.

• Internationalization of Indian currency would also require full capital account convertibility.

• As a policy, we have followed a gradual and cautious approach in opening up the capital account.

• The capital account is being progressively liberalized in accordance with the evolving macro-economic conditions and requirements of the Indian industries, individuals and financial sectors.

• • Government has been taking measures to promote the internationalization of the Indian Rupee. Recently, a framework was put in place for issuance of Rupee denominated bonds overseas by Indian corporate.