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Post RBI nod, 9 vostro accounts opened to facilitate overseas trade in rupee.
Nov 17, 2022

The government said nine special vostro accounts have been opened with two Indian banks after permission from the Reserve Bank of India (RBI) to facilitate overseas trade in Indian rupee. Sberbank and VTB Bank-the largest and second-largest banks of Russia respectively-are the first foreign lenders to receive approval after the RBI announced the guidelines for overseas trade in the rupee in July.
 
Another Russian bank Gazprom, which does not have its bank in India, has also opened this account with Kolkata-based UCO Bank.
 
'Nine accounts have been opened. One in UCO Bank, one in Sber, one in VTB and six with IndusInd Bank. These six are different Russian banks,' commerce secretary Sunil Barthwal said while releasing trade data.
 
The move to open the special vostro accounts clears the deck for settlement of payments in rupee for India-Russia trade, enabling cross-border transactions in the Indian currency.
 
The RBI has allowed these special vostro accounts to invest the surplus balance in Indian government securities to help popularise the new arrangement.
 
On when the rupee trade with Russia may begin, Barthwal said there is a process involved in it and hopefully it would materialise soon.
 
Barthwal said he held a meeting with officials of UCO Bank, RBI and the Department for Financial Services and discussed ways to promote rupee trade.
    
economictimes.indiatimes.com

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