Yangon, July 2 (IANS): The first transaction of over Rs one crore of pulses export was successfully executed by the Yangon office of India's Punjab National Bank (PNB) on Tuesday under the Rupee Kyat Settlement Mechanism which will simplify trade transactions between India and Myanmar and make them more efficient.

The mechanism is also expected to eliminate complexities related to exchange rates by eliminating the need for multiple currency conversations.

The Central Bank of Myanmar had released the guideline for payment procedures under the Special Rupee Vostro Account (SRVA) on January 26, this year. The new mechanism will apply for both sea and border trade and for trade in goods as well as services by paying directly in local currencies.

"We encourage businesses on both sides to benefit from the mechanism," stated the Embassy of India in Yangon on Tuesday.

In a meeting chaired by the Secretary of the Department of Consumer Affairs in April on the issues relating to pulses imports from Myanmar, the Indian Mission informed that dissemination about the operationalisation of new mechanism among trading communities especially pulses importers is being separately done wherein they are being requested to utilise Rupee/Kyat direct payment system using SRVA through the Punjab National Bank.

The operationalisation of the mechanism will also boost bilateral trade and enhance the usage of local currencies.