RBI changes the process of opening special rupee vostro accounts; Know update
RBI: The Reserve Bank of India on Tuesday changed its rules and allowed banks to open special rupee vostro accounts (SRVAs) of correspondent banks without prior approval. Know the update about this.
The Reserve Bank of India on Tuesday amended its guidelines and permitted banks to open special rupee vostro accounts (SRVAs) of correspondent banks without approval. In July 2022, the Reserve Bank of India (RBI) introduced an additional arrangement for invoicing, payment, and settlement of exports/imports in Indian rupees.
In this mechanism, banks could open SRVAs of correspondent banks with the advance permission of the Reserve Bank for clearing cross-border trade transactions. RBI said in a statement, "Based on the review of the process involved in opening SRVAs, it has been decided to eliminate the requirement of seeking RBI approval for opening SRVAs."
Banks are now permitted to open SRVAs of correspondent banks without going to the Reserve Bank of India. RBI stated that the revision in the process would accelerate the procedure of opening SRVAs considerably.
