HDFC Bank and Canara Bank have got approval from the Reserve Bank of India (RBI) to open a special Vostro account for trade in rupees and both the approvals are for trade with Russia, banking industry sources said.
So far five Indian banks — UCO Bank, Union Bank, and IndusInd Bank being the other three — have received regulatory clearance for such trade. This apart, two Russian banks — Sber Bank and VTB — have the RBI’s approval. Both have branches in India.
According to sources, three banks have opened accounts so far though no deal has been done through this mechanism. The move is aimed at popularising trade in the domestic currency.