The Reserve Bank of India has expanded the range of instruments in which surplus balances held in Special Rupee Vostro Accounts under the Indian rupee international trade settlement framework may be invested, allowing Authorised Dealer Category-I banks to permit investments in specified Indian corporate debt instruments with immediate effect. Previously, RBI guidance allowed these balances to be used for investments such as Government Treasury Bills and Government securities, subject to extant guidelines and prescribed limits. Under the updated directions, eligible investments now also include non-convertible debentures or bonds and commercial papers issued by an Indian company, in line with the guidelines and limits prescribed in A.P. (DIR Series) Circular No. 13. The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and banks are instructed to inform relevant constituents and customers.
Reserve Bank of India 2025-10-03
Reserve Bank of India expands permitted investments for Special Rupee Vostro Account surpluses to include Indian corporate bonds and commercial paper
The Reserve Bank of India has expanded investment options for surplus balances in Special Rupee Vostro Accounts, allowing Authorised Dealer Category-I banks to invest in specified Indian corporate debt instruments. Eligible investments now include non-convertible debentures, bonds, and commercial papers issued by Indian companies, as per A.P. (DIR Series) Circular No. 13, under the Foreign Exchange Management Act, 1999.