RBI permits banks to open Vostro Accounts from 22 countries to promote bilateral trade in rupee
Reserve Bank of India (RBI) has permitted 20 banks operating in the country to open 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries including Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana and Israel, as part of efforts to promote bilateral trade in local currencies. Other countries are Kazakhstan, Kenya, Malaysia, Maldives, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and United Kingdom.
Minister of State for Commerce and Industry Som Parkash has said that an memorandum of understanding (MOU) has been signed between the Reserve Bank of India (RBI) and the Central Bank of UAE on July 15, 2023. This would enable exporters and importers to invoice and pay in their respective domestic currencies enabling the development of a bilateral foreign exchange market.
Meanwhile, Minister of State for Commerce and Industry Anupriya Patel said India's exports rose by 36.6 per cent during the last five years from $330.07 billion in 2018-19 to $450.95 billion in 2022-23. India's imports rose by 38.8 per cent during the last five years from $514.07 billion in 2018-19 to $714.04 billion in 2022-23. She also stated that most of the goods imported from China are capital goods, intermediate goods and raw materials and are used for meeting the demand of fast expanding sectors like electronics, telecom and power in India.
