RBI and Bank of Mauritius signed money transfer agreement. The Reserve Bank of India (RBI) has made an agreement with the Bank of Mauritius (BOM). This agreement is to encourage the use of Indian Rupees (INR) and Mauritian Rupees (MUR) when India and Mauritius trade with each other.
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Signing and Key Participants
The RBI and the Bank of Mauritius have signed the agreement to use the Indian Rupee and the Mauritian Rupee for money transfers between the two countries. The RBI Governor, Shree Sanjay Malhotra, and the BOM Governor, Shree Rama Krishna Sithanen G C S K, signed this agreement.
Objectives of the Agreement
The RBI said that this agreement is to increase the use of Indian Rupees and Mauritian Rupees in trade between the two countries. This agreement covers all regular money transfers. It also covers special money transfers that both countries have agreed upon.
Benefits for Trade and Finance
This plan will help those who send goods out of the country and those who bring goods into the country. They can now write bills and pay in their own country’s money. This will help create a market for the Indian Rupee and Mauritian Rupee. Using local money will reduce the cost and time taken for money transfers.
Strengthening Bilateral Relations
“This agreement is a very important step in making the relationship between the RBI and the BOM stronger,” said the RBI. Using local money in trade between the two countries will help increase trade. It will also make the financial relationship stronger. This will also strengthen the long-standing historical, cultural, and economic ties between India and Mauritius.
Establishment of Local Currency Settlement System
This agreement will lead to the setting up of a Local Currency Settlement (LCS) System. This system will use Indian Rupees and Mauritian Rupees. This will reduce the need to use foreign money for transfers between the two countries. The LCS will help Mauritius and India develop their money exchange markets. It will also help in trade, investments, sending money, financial market growth, economic growth, and stability.
Infrastructure and Settlement Mechanisms
The agreement also allows for the setting up of an Indian Rupee Clearing Centre in Mauritius. It also allows for the Indian Rupee to be used as a money settlement currency in the Mauritius Automated Clearing and Settlement System. This will allow banks to keep accounts in Indian Rupees at the Bank of Mauritius.
Regional Impact and COMESA
The Indian Rupee Clearing Centre will also be used by the Common Market for Eastern and Southern Africa’s Regional Payment and Settlement System (COMESA). The Bank of Mauritius is the settlement bank for COMESA. It is planned that the Indian Rupee will be used as a settlement currency. This will help Mauritius become a center for clearing and settling Indian Rupee transactions in Africa.
FAQs – RBI and Bank of Mauritius signed money transfer agreement
Q: What agreement has the Reserve Bank of India (RBI) made with the Bank of Mauritius (BOM)?
A: The RBI has made an agreement with the BOM to encourage the use of Indian Rupees (INR) and Mauritian Rupees (MUR) for trade between India and Mauritius.
Q: What agreement has the Reserve Bank of India (RBI) made with the Bank of Mauritius (BOM)?
A: The Reserve Bank of India has made an agreement with the Bank of Mauritius to encourage the use of Indian Rupees and Mauritian Rupees for trade between India and Mauritius.
Q: Who signed the agreement to use Indian and Mauritian Rupees for money transfers?
A: The Reserve Bank of India Governor, Shree Sanjay Malhotra, and the Bank of Mauritius Governor, Shree Rama Krishna Sithanen G C S K, signed the agreement.
Q: Why was this agreement made?
A: This agreement was made to increase the use of Indian Rupees and Mauritian Rupees in trade between the two countries. This includes both regular and special money transfers.
Q: How will this agreement help trade and finance between India and Mauritius?
A: This agreement will allow traders to write bills and pay in their own country’s currency. This helps reduce the cost and time taken for money transfers. It also creates a market for both currencies.
Q: What is the Local Currency Settlement (LCS) System?
A: The Local Currency Settlement system is a system using Indian Rupees and Mauritian Rupees. It reduces the need for foreign money in transfers between the two countries.
Q: What infrastructure will be set up in Mauritius due to this agreement?
A: An Indian Rupee Clearing Centre will be set up in Mauritius. Also, the Indian Rupee will be used as a settlement currency in the Mauritius Automated Clearing and Settlement System.
Q: How will this agreement affect the Common Market for Eastern and Southern Africa (COMESA)?
A: The Indian Rupee Clearing Centre will be used by COMESA. The Indian Rupee will be used as a settlement currency. This helps Mauritius become a centre for Indian Rupee transactions in Africa.
