India, Malaysia can now trade in Indian rupee

India and Malaysia can now use the Indian rupee to settle trade in addition to other currencies, the Ministry of External Affairs (MEA) of India said on Saturday.

The move follows the decision by the Reserve Bank of India in July 2022 to allow settlement of international trade in Indian currency, reports The Times of India.

"Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies," the MEA said.

The initiative has been taken to accelerate the growth of trade between the two countries and to support the interest of the global trading communities in dealing with the Indian rupee, added the MEA.