SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Finance
The Reserve Bank of India has revised the procedure for opening Special Rupee Vostro Accounts (SRVAs), which are used to facilitate international trade settlement in Indian Rupees. Earlier, authorised dealer (AD) banks were required to obtain RBIβs prior approval before opening SRVAs of correspondent banks. Following a review, this requirement has now been removed. AD banks can open such accounts directly without reference to the RBI, thereby expediting the process. This reform is expected to enhance the efficiency of cross-border trade settlement in INR and promote wider adoption of the rupee in global trade. It aligns with Indiaβs broader strategy to internationalise the rupee, reduce dependence on foreign currencies, and strengthen financial autonomy in external trade.
Relevant question for policy stakeholders: How can the introduction of Special Rupee Vostro Accounts (SRVAs) enhance cross-border trade settlements in INR and what regulatory frameworks are needed to ensure their effective implementation while managing associated risks?
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