RBI has permitted banks from 18 countries to trade in rupee: Centre

Last Updated16/03/2023

RBI has permitted Banks of 18 countries to open special vostro rupee accounts (SVRAs) for settling payments in Indian rupees.

SVRAs could be set up by banks of partner countries by approaching authorised dealer (AD) banks in India that may get permission from the RBI after the due procedure.
The RBI had granted approval to “domestic and foreign AD Banks in 60 cases for opening SRVAs of banks from 18 nations — Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, the Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom”.

Russia has been vocal in using trade in local currency for the overall process of “de-dollarisation”.
But India has been supporting the idea of trade in local currency mainly to boost exports.
The process of SVRAs began in July 2022 when the RBI announced ti have an additional arrangement for invoicing, payment, and settlement of exports/imports in INR [Indian rupees]”.

In the past one year, India has finalised trade pacts with partner countries such as the UAE and Australia and begun negotiation with others such as the U.K. and the EU while making inroads for the national currency in bilateral and global trade.