46 UPSC Civil Services Mains 2021 Questions asked from Civil Services Chronicle Hindi

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.