Internationalisation of Rupee

  • In August 2025, the RBI approved 123 correspondent banks from 30 trading partner countries to open 156 Special Rupee Vostro Accounts (SRVAs) with 26 Indian banks to promote bilateral trade in local currencies.
  • Special Rupee Vostro Accounts allow foreign banks to hold Indian currency for settling international trade transactions.
  • Bilateral trade settlement in INR reduces transaction costs and dependence on the US dollar for exporters.
  • A Nostro account is maintained by a domestic bank in a foreign country in foreign currency.
  • The mechanism helps in stabilizing the exchange rate by mitigating the impact of global currency volatility.

Roadmap for Capital Convertibility

  • India currently permits ....
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