The change in the Foreign Trade Policy comes after the Reserve Bank of India had, in July, issued guidelines for the settlement of international trade in Indian rupees.

The central government has made changes to the Foreign Trade Policy to allow for rupee settlement of international trade for export promotion schemes, the commerce ministry said on November 9.

"Given the rise in interest in internationalization of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees", the ministry said in a statement.

The ministry said the changes have been notified for imports for exports, export performance for recognition as Status Holders, realization of export proceeds under advance authorization and Duty-Free Import Authorization schemes, and realization of export proceeds under export promotion capital goods scheme.