Regional trade push: RBI allows rupee credit to Bhutan, Nepal and Sri Lanka; extends forex repatriation window

The Reserve Bank of India has permitted Indian banks and their overseas branches to offer rupee-denominated loans to individuals and banks in Bhutan, Nepal, and Sri Lanka. This move aims to simplify cross-border trade and payment systems. Additionally, the RBI has extended the repatriation period for unutilized foreign currency balances held by Indian exporters in IFSC accounts to three months.