Mumbai, Nov 18 (IANS): The RBI on Friday issued an order allowing banks maintaining Special Rupee Vostro Accounts to open an additional special current account for enabling their customers to carry out settlement of their export transactions. The move is aimed to provide greater operational flexibility to exporters.
The RBI had, on July 11 last year, put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR through Special Rupee Vostro Accounts of the correspondent banks of the partner trading country maintained with Authorised Dealer (AD) Category-I banks in India.
The RBI move is aimed at increasing trade flows among nations that prefer to settle international trade in rupees instead of dollars. Domestically, businesses that export and import in rupees can be better protected from exchange rate fluctuations.