IANS | 17 Nov, 2023
The RBI on Friday issued an order allowing banks maintaining Special
Rupee Vostro Accounts to open an additional special current account for
enabling their customers to carry out settlement of their export
transactions. The move is aimed to provide greater operational
flexibility to exporters.
The RBI had, on July 11 last year, put
in place an additional arrangement for invoicing, payment, and
settlement of exports/imports in INR through Special Rupee Vostro
Accounts of the correspondent banks of the partner trading country
maintained with Authorised Dealer (AD) Category-I banks in India.
The
RBI move is aimed at increasing trade flows among nations that prefer
to settle international trade in rupees instead of dollars.
Domestically, businesses that export and import in rupees can be better
protected from exchange rate fluctuations.
