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RBI Eases Rules for Opening Special Rupee Vostro Accounts (SRVAs).

Banking & Finance | Dated: 07 Aug 2025

In August 2025, the Reserve Bank of India (RBI) relaxed norms for opening Special Rupee Vostro Accounts (SRVAs), allowing banks to set up such accounts for foreign correspondent banks without prior RBI approval. This move streamlines the process introduced in July 2022 for settling cross-border trade in Indian Rupees (INR).

🎯 Key Highlights:

  • - The relaxation removes the earlier requirement for obtaining prior RBI approval, making it easier and faster for banks to open SRVAs for foreign partners.
  • - The new norms take effect immediately, enhancing efficiency in handling international trade transactions in INR.

💡 Other Important Facts:

  • (i) SRVAs were introduced in July 2022 to enable settlement of international trade in INR, reducing dependence on freely convertible foreign currencies and strengthening financial stability.
  • (ii) Earlier, banks could only open SRVAs for correspondent banks after securing prior RBI approval for activities like invoicing, payment, and settlement of exports/imports in INR.
  • (iii) The new rules are expected to boost trade in INR, simplify cross-border settlements, and promote India’s currency in global trade.

📚 Test Your Knowledge:

The Reserve Bank of India (RBI) introduced which type of account in July 2022 to facilitate cross-border trade settlement in Indian Rupees with partner countries?

Correct Answer: Special Rupee Vostro Accounts

🚀 Quick Recap: