Archive · 3 Oct 2025
RBI Permits SRVA Balances for Corporate Debt Investments
The Reserve Bank of India (RBI) is changing how money in Special Rupee Vostro Accounts (SRVA) can be used.
SRVAs are used by people outside India to trade with India in rupees.
Before, this money could only be invested in government bonds.
Now, it can also be used to buy bonds and commercial papers from Indian companies.
This change aims to attract more investors to the Indian corporate bond market and help it grow.
Banks will help the account holders manage these new investments.
Both the account holders and the banks need to follow specific investment limits.
RBI permits SRVA balances to invest in corporate debt securities.
SRVA accounts are for international trade settlements in rupees.
Previously, SRVA funds could only invest in government securities.
Investments are subject to FPI limits under the General Route.
AD Category-I banks will facilitate separate demat accounts for SRVA holders.
- Who
- RBI, SRVA holders, and Indian companies
- What
- Allowing SRVA balances to be used for investments in corporate debt securities.
- When
- October 3, 2025
- Where
- India
- Why
- To attract investors, deepen the corporate bond market, and internationalize the rupee.
- Account Type
- Special Rupee Vostro Accounts (SRVA)
- SRVA Purpose
- International trade settlement in rupees
- New Investments Allowed
- Corporate bonds and commercial papers issued by Indian companies
- Prior Investment Options
- Central Government Securities (including Treasury Bills)
- Investment Limit
- Subject to FPI investment limits under the General Route
- Responsibility
- SRVA holders and AD Category-I banks
- Demat Accounts
- Separate demat accounts to be opened for SRVA holders
