RBI streamlines procedure for opening special rupee vostro accounts

The Reserve Bank of India (RBI) has streamlined the process for banks to facilitate cross-border trade transactions in Indian Rupees by removing the requirement of prior RBI approval for opening Special Rupee Vostro Accounts (SRVAs).The RBI has decided to allow Authorised Dealer (AD) banks to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval. The instruction is applicable with immediate effect, RBI said. In July 2022, the Reserve Bank of India (RBI) had put in place an additional arrangement for invoicing, payment, and settlement of exports/ imports in Indian rupee. Under the arrangement, banks were permitted to open SRVAs of correspondent banks, with the prior approval of the Reserve Bank for settling cross-border trade transactions.

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