The Government asks banks to fasten the process of opening a Special Rupee Vostro Account (SRVA). Reserve Bank of India announced a new trade policy to deal with international trade in rupees.
Now, when Indian importers want to make any transaction with international clients, the amount will be credited to this Rupee Vostro account. Also, when Indian traders need to make payments for goods and services, the amount will be debited from the balance and credited to the exporter’s regulator account.
SRVA’s aim is to promote cross-border trade in the Indian rupee instead of US dollars. Apart from banks, the department of commerce has to engage with exporters and importers on making payments via SRVA. Banks have also been asked to proceed over 115 proposals initially and to remain careful with Russian banks while dealing with them.
This would help in reducing the transaction cost and foreign exchange risk for importers and exporters. The finance ministry urges the Indian embassies to spread awareness about this framework among importers and exporters.