International Trade Settlement in Indian Rupees (INR) - As on Dec 01, 2022

Chapters / List

1. How is the Special Rupee Vostro Account (SRVA) different from the already existing Rupee Vostro Account provided for under Foreign Exchange Management (Deposit) Regulations, 2016?

   ---

2. What is new in this arrangement?

   ---

3. Whether RBI approval is required for opening such Special Rupee Vostro Accounts?

   ---

4. What is Correspondent banking?

   ---

5. Will this be a bank to bank arrangement or country to country arrangement?

   ---

6. What is the procedure for opening a Special Rupee Vostro Account with an Indian AD bank?

   ---

7. Is the Indian branch of foreign bank eligible to open Special Rupee Vostro Account of headquarter branch/any other branch situated in any foreign country?

   ---

8. Can the existing Rupee Vostro Accounts of banks from trading partner countries be used as Special Rupee Vostro Accounts under the new mechanism?

   ---

9. Can foreign bank (correspondent bank) maintain more than one Special Rupee Vostro Account with different AD banks?

   ---

10. Can an AD bank in India open only one Special Rupee Vostro Account from a foreign country?

    ---

11. How will the exchange rate be determined?

    ---

12. How would the exchange rate between INR and the currency of the trading partner country be market-determined in the absence of direct quote for the pair of currencies?

    ---

13. Whether this will address the difficulties in cross border payments with specific countries.

    ---

14. Can balances in Special Rupee Vostro Account be repatriated?

    ---

15. Whether income from INR balance in SRVA can be repatriated?

    ---

16. Can balances in Special Rupee Vostro account be used for FDI, ECB?

    ---

17. What are the different types of investment where surplus balance can be invested?

    ---

18. Whether balances can be transferred from Special Rupee Vostro Account (SRVA)?

    ---

19. Whether INR balance in SRVA can be hedged?

    ---

20. For investment in T-Bills and government securities from funds of SRVA with AD bank, whether FPI license is required by the account holder overseas bank?

    ---

21. Which bank will be responsible for reporting for cross border transaction either AD bank in India or correspondent bank?

    ---

22. How this new mechanism will benefit the Indian traders?

    ---