The Reserve Bank of India has consolidated and rationalised its instructions on Special Rupee Vostro Accounts, issuing a circular that supersedes five earlier circulars on international trade settlement in Indian rupees with immediate effect. The circular restates the operating framework for Authorised Dealer Category-I banks, which may open SRVAs for their branches outside India or for banks resident outside India. It confirms that SRVAs remain an additional arrangement for invoicing, payment and settlement of exports and imports in INR, and that all permissible current and capital account transactions under the Foreign Exchange Management Act may also be settled through these accounts. Under the consolidated framework, banks maintaining an SRVA may also open an additional current account for an exporter or importer exclusively for export and import settlement. SRVAs may be funded through inward remittances or transfers from other repatriable INR accounts, and balances generated from permissible current and capital account transactions may be retained in the account. Investment of SRVA balances in debt instruments will be governed by the Reserve Bank of India Master Direction on Non-resident Investment in Debt Instruments, 2025, while documentation and reporting will continue under existing FEMA guidelines. The circular also adds that details of SRVAs held by overseas correspondent banks with banks in India may be updated periodically in the SRVA directory published by FEDAI. The instructions take effect immediately. Authorised dealer banks are expected to bring the circular to the notice of affected constituents and customers.
Reserve Bank of India2026-07-17
Reserve Bank of India consolidates Special Rupee Vostro Account framework, superseding earlier circulars with immediate effect
The Reserve Bank of India has consolidated and rationalised the Special Rupee Vostro Account framework, superseding five earlier circulars with immediate effect. The circular confirms that authorised dealer banks may open SRVAs for overseas branches or banks resident outside India and use them for INR settlement of cross-border trade and other permissible FEMA current and capital account transactions. It also allows linked exporter or importer current accounts and provides for SRVA details to be updated in FEDAI's directory.