Indian banks can lend in INR in SL, Bhutan, and Nepal

Tuesday, 14 October 2025 02:39 - - {{hitsCtrl.values.hits}}

The Reserve Bank of India has amended regulations allowing Indian banks to extend loans in Indian rupees (INR) to banks and individuals residing in Sri Lanka, Bhutan, and Nepal.

Under the revised regulation, both Indian banks and their overseas branches can now provide INR-denominated credit to borrowers in the three neighbouring countries.

In a statement, the High Commission of India in Colombo said the move will make credit more accessible for Sri Lankan businesses and help reduce exchange rate risks.

It added that the change is expected to strengthen trade and financial links between India and its neighbours by promoting the use of INR in regional transactions.