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RBI seeks approval to let Indian banks lend rupees to foreign borrowers, targeting neighbors first.
The Reserve Bank of India (RBI) has requested government approval to allow domestic banks to lend in rupees to foreign borrowers, initially targeting neighboring countries like Bangladesh, Nepal, Sri Lanka, and Bhutan.
This initiative aims to boost the use of the rupee in international trade and reduce reliance on foreign currency loans.
If successful, rupee lending could expand globally, making the Indian currency more widely accepted internationally.
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