Announcement of Kyat-Rupee Payment Mechanism for Bilateral Trade Between Myanmar and India

In a significant development aimed at enhancing bilateral trade between Myanmar and India, the Kyat-Rupee Payment Mechanism has officially been operationalized from January 25, 2024. This new payment system is designed to streamline trade transactions, reduce complexities, and increase the efficiency of financial settlements between the two nations.

The Kyat-Rupee settlement mechanism will be managed through a designated network of authorized banks. For Indian entities, Punjab National Bank (PNB) has been designated as the official partner, while Myanmar has selected a range of institutions to facilitate the process. The authorized Myanmar banks include:

• Myanma Economic Bank (MEB)

• United Amara Bank (UAB)

• Co-operative Bank (CB)

• Global Treasure Bank (GDB)

• Yoma Bank

• Myanmar Citizens Bank (MCB)

• Ayeyarwady Bank (AYA)

• A Bank

• Shwe Bank

To ensure smooth transactions, payments will be processed via the Special Rupee Vostro Account (SRVA) system, with clear payment guidelines already in place.

The new Kyat-Rupee payment mechanism is applicable to both sea trade and border trade, as well as to the exchange of both goods and services between the two countries. This system is expected to provide substantial benefits to traders by minimizing the impact of exchange rate fluctuations and reducing the costs associated with currency conversions. It also simplifies financial operations for businesses engaging in cross-border trade.

Businesses and traders are encouraged to begin utilizing this enhanced payment system for all relevant transactions.

Myanmar Embassy, New Delhi

23 July 2025