Archive · 19 Aug 2025
RBI Eases Rules for Special Rupee Vostro Accounts
The Reserve Bank of India (RBI) has made it easier for banks to help businesses trade with other countries using Indian Rupees.
Banks can now open special accounts called SRVAs without asking the RBI for permission first.
This should speed things up.
The RBI also reminded banks to follow the existing rules for managing money from other countries and to know their customers well.
The new rule started on August 5th.
RBI allows banks to open Special Rupee Vostro Accounts (SRVAs) without prior approval.
This decision aims to streamline the process for overseas transactions.
The RBI issued the directive on August 5th.
Banks must adhere to existing Foreign Exchange Management Act (FEMA) and KYC norms.
The change applies immediately, allowing banks to expedite account openings.
- Who
- The Reserve Bank of India (RBI) and Authorised Dealer (AD) banks.
- What
- RBI allows banks to open Special Rupee Vostro Accounts (SRVAs) without prior approval.
- When
- The RBI made the announcement on August 5th.
- Where
- India.
- Why
- To reduce the time taken in the whole process and streamline overseas transactions.
- Action
- RBI allows banks to open SRVAs without prior approval.
- Date of Circular
- August 5th
- Affected Parties
- AD banks and overseas correspondent banks
- Legal Basis
- Sections 10(4) and 11(1) of FEMA, 1999
- Purpose
- To expedite the process of opening SRVAs