Govt, RBI propose action plan for facilitating special rupee accounts

According to the action plan, once banks receive applications from corresponding banks, they have to undertake internal scrutiny and send it to the RBI for approval

The Centre, along with the Reserve Bank of India (RBI), has prepared an action plan for facilitation of special rupee accounts for trade settlements. This includes nudging banks and the Indian Banks’ Association (IBA) to reach out to foreign banks for opening such vostro accounts. Banks have also been asked to process over 115 proposals at the earliest, and to remain cautious while dealing with Russian banks. 

In a meeting held on Wednesday, the government spelt out the plan, which requires the Department of Commerce and the Directorate General of Foreign Trade (DGFT) to encourage trade associations to utilise the RBI’s