After the Reserve Bank of India (RBI) allowed in invoicing and payment of international trade transactions in rupees and other local currencies, 123 correspondent banks from 30 trading partners have opened special accounts in India to facilitate these transactions, minister of state for commerce and industry Jatin Prasada said Friday.
The RBI has permitted opening of total 56 Special Rupee Vostro Accounts (SVRO) with 26 banks authorised to deal in foreign exchange transactions, the minister said in reply to a question in Rajya sabha.
The Reserve Bank (RBI) has also entered into Local Currency Settlement System (LCSS) arrangements with select trade partner countries – UAE, Indonesia and Maldives – for encouraging settlement of cross-border trade in Indian rupee and the local bank of the partner country, Prasada said.
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In December 2023, the Foreign Exchange Management (Manner of Receipt and Payment) Regulations were revised to enable cross border transactions in all foreign currencies – including local currencies of trading partner countries – and INR.
