The Reserve Bank of India (RBI) set up the mechanism in July.
The government is trying to bring countries that are short of dollars into the system, said a government official and an industry source aware of the development. The sources declined to be named because the matter is confidential.
Documents show that four countries have shown interest in opening special rupee accounts, called Vostro accounts, but partner banks in India are yet to provide these facilities. Opening of these accounts requires approval from the Reserve Bank of India.
Documents show Mauritius and Sri Lanka have also shown interest and seen their special Vostro accounts approved by the RBI.
According to the document, India’s central bank has given approval to banks to open 12 vostros for trading in rupees with Russia. Six other accounts have been authorised, including five for trade with Sri Lanka and one for trade with Mauritius, the same document showed.
Queries sent to the federal finance ministry, commerce ministry and the RBI remained unanswered.