RBI removes prior approval requirement for opening vostro accounts

RBI allows authorised dealer banks to open Special Rupee Vostro Accounts for foreign banks without prior approval, easing rules to boost rupee-based trade

The Reserve Bank of India (RBI) has eliminated the requirement for prior approval when authorising Special Rupee Vostro Accounts (SRVAs), the central bank said in a notification on Tuesday.

 

“On a review, it has been decided to allow AD banks to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval,” the release said.

 

Previously, Indian banks acting as authorised dealers (ADs) were required to obtain RBI permission before opening SRVAs for foreign correspondent banks.

 

SRVAs serve as Indian rupee (INR) accounts at Indian banks to facilitate invoicing, payment and settlement of exports and imports in Indian rupees.