The RBI allows banks in 22 countries to open vostro accounts for rupee trading.
Pic Credit: Pexels
According to the government, the Reserve Bank of India has authorized 20 domestic banks to create 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries as part of efforts to increase bilateral commerce in local currencies.
Pic Credit: Pexels
As of July 23, 20 Indian banks had been granted permission to operate SRVAs of partner banks from 22 countries, including Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana, and Israel.
Pic Credit: Pexels
Exporters and importers would be able to invoice and pay in their respective native currencies, allowing the creation of a bilateral foreign exchange market.
Pic Credit: Pexels
Over the previous five years, India's imports have increased by 38.8%, from USD 514.07 billion in 2018-19 to USD 714.04 billion in 2022-23.