New Delhi [India], July 2 (HBTV): India and Myanmar have pioneered a new bilateral trade payment system as the Yangon office of Punjab National Bank on Tuesday completed the first transaction exceeding INR one crore for a shipment of pulses under the Rupee-Kyat Settlement Mechanism. 

The initiative aims to streamline trade transactions between India and Myanmar, enhancing efficiency by eliminating complexities associated with exchange rates through direct payment in local currencies.

The Central Bank of Myanmar introduced guidelines for payment procedures via the Special Rupee Vostro Account (SRVA) on January 26 this year. The mechanism covers sea and border trade, encompassing transactions for goods and services.

The Indian Embassy in Yangon said on X that the Rupee-Kyat trade settlement mechanism was now operational. The first transaction of over INR one crore of pulses export was successfully executed by Yangon office of PNB India today, it stated, and urged businesses on both sides to benefit from the mechanism.   

The Global New Light of Myanmar, a Myanmar-based daily reported on May 3 that Consumer Affairs Secretary Nidhi Khare discussed the price fluctuation of pulses with the Indian Mission in Yangon in light of volatile exchange rates and stocks held by traders. This payment mechanism was officially announced on 13 April.  

The rupee-kyat settlement mechanism can be done through the Punjab National Bank when Indian traders import pulses from Myanmar. 

(ANI) This is a syndicated news feed. HBTV has edited it for clarity.