Rupees instead of dollars
A statement issued by the Indian Embassy in the UAE shows payment to Abu Dhabi National Oil Company (ADNOC) from Indian Oil Corporation (IOC.NS) confirms the transfer of rupees instead of dollars for the first time. India in July signed an agreement with the UAE allowing it to settle trade in rupees instead of dollars, which was done by Prime Minister Modi during his visit to the UAE, boosting India’s effort to cut transaction costs by eliminating dollar conversion. At that meeting, two countries also agreed to set up a real-time payment link to facilitate easier cross-border money transactions.
As per the news agency Reuters, IOCL made the payment in rupees for the purchase of a million barrels of oil.
A second transaction through rupees
A second transfer by an Indian buyer involving 128.4 million rupees to buy 25 kg of gold stands as a second proof.