Special Rupee Vostro Account

The Reserve Bank of India (RBI) announced a new trade mechanism to settle international trade in rupees.

To settle these trade deals, authorised Indian banks need to open and maintain Special Rupee Vostro Accounts of the partner trading country's banks.
Rupee Vostro Accounts keep the foreign entity's holdings in the Indian bank, in Indian rupees.
When an Indian importer wants to make a payment to a foreign trader in rupees, the amount will be credited to this Vostro account.
Similarly, when an Indian exporter has to be paid for goods and services in rupees, this Vostro account will be deducted and amount credited to the exporter's regular account.