The Reserve Bank of India (RBI) has issued a directive to simplify international trade settlements conducted in Indian Rupees (INR). Under the new guidelines, effective immediately, all Category-I Authorised Dealer (AD) Banks are now permitted to open Special Rupee Vostro Accounts (SRVAs) for overseas correspondent banks without seeking prior approval from the RBI. This new rule revises an earlier circular from July 11, 2022. The directive, issued under the Foreign Exchange Management Act (FEMA), 1999, aims to streamline the process for facilitating international transactions in the domestic currency. The RBI has instructed AD banks to inform their clients and customers of this change. This move is expected to enhance the ease of doing business for global partners engaging in trade with India and could further promote the use of the INR in international markets.
RESERVE BANK OF INDIA
RBI/2025-2026/71
A.P. (DIR Series) Circular No.08 | Dated: August 05, 2025
To
All Category-I Authorised Dealer Banks
Madam/Sir
International Trade Settlement in Indian Rupees (INR)
Attention of Authorised Dealer (AD) Category – I banks is invited to Para 10 of A.P (DIR Series) Circular No.10 dated July 11, 2022 on the captioned subject.
2. On a review, it has been decided to allow AD banks to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval.
3. The above instruction is applicable with immediate effect. AD banks may bring the contents of this circular to the notice of its constituents and customers concerned.
4. These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(N. Senthil Kumar)
Chief General Manager
