Nepal, Nov. 1 -- India's unwavering commitment to finding a smoother mechanism for cross-border payment settlements in the neighbourhood will now make it possible to lend Indian rupees (INR) to non-residents in Bhutan, Nepal, and Sri Lanka for bilateral trade. A path-breaking initiative of the Reserve Bank of India (RBI) announced during its Monetary Policy Committee (MPC) meeting held on October 1 should pave the way for a simplified trade regime, more so with Nepal, considering its existing complex cross-border payment options for bilateral trade with India and upfront challenges for working capital in the wake of latest political developments in the country.

India has been making steady progress in using the INR for international trad...