The Reserve Bank of India (RBI) has permitted persons resident outside India holding Special Rupee Vostro Accounts (SRVAs) to invest their surplus rupee balances in central government securities, including treasury bills. The central bank also updated its Master Direction on Non-resident Investment in Debt Instruments to incorporate the operational guidelines for this measure. According to the RBI's latest guidelines, foreign entities holding such accounts will now be able to channel their unused rupee funds from trade settlements into investments in central government securities, including short-term instruments such as treasury bills. The RBI noted that persons resident outside India that maintain a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees in terms of A.P. (DIR Series) Circular No. 10 dated July 11, 2022 may invest their rupee surplus balance in the aforesaid account in Central Government Securities.
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