According to the RBI, the authorised dealer banks should get the prior approval from its
The central bank said the measure is taken to promote growth of global trade with emphasis on exports from
The RBI said the broad framework for cross border trade transactions in Indian rupee under
The RBI said in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, authorised dealer banks in India have been permitted to open
Accordingly, for settlement of trade transactions with any country, the authorised dealer banks in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country.
In order to allow settlement of international trade transactions through this arrangement, the RBI said that Indian importers undertaking imports through this mechanism shall make payment in rupee which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier.
Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in rupee from the balances in the designated Special Vostro account of the correspondent bank of the partner country.
The RBI has also listed out the framework in case of advance against exports, setting of export receivables against import payables, bank guarantee, use of surplus balance in the Special Vostro Accounts and others.
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