25-04-2024 | 18:41 PM
India has simplified the payment mechanism for traders by facilitating them to use the Rupee/Kyat direct payment system through the Special Rupee Vostro Account (SRVA).
Key Highlights
(i) Special Rupee Vostro Account (SRVA) is an additional arrangement to the payment settlement for international trade.
(ii) It facilitates international trade in Indian Rupees with partner countries.
(iii) It requires prior approval from the Reserve Bank of India (RBI) before opening the account.
(iv) It reduces dependency on foreign exchanges.
(v) It facilitates global banking services without a physical presence abroad.
About Vostro Account
It is an account that a domestic bank holds for a foreign bank in the domestic bank’s currency. I.e; Indian Rupees
The RBI allowed nine such accounts, including IndusInd Bank and UCO Bank.
