Rupee Vostro account rules require RBI approval and strict funding, collateral, KYC/AML and monitoring safeguards. Prior RBI approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses. Accounts are for inward personal remittances only, must operate on a credit only basis, prohibit outward remittances and cash disbursements, and require due diligence, legal documentation, licence verification and, where appropriate, collateral or guarantees. Operations may follow DDA, Non DDA or Speed Remittance procedures with specified funding, audit/inspection and reporting obligations to ensure funds cover pipeline debits and compliance with KYC/AML and internal control requirements.
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Provisions expressly mentioned in the judgment/order text.
Rupee Vostro account rules require RBI approval and strict funding, collateral, KYC/AML and monitoring safeguards.
Prior RBI approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses. Accounts are for inward personal remittances only, must operate on a credit only basis, prohibit outward remittances and cash disbursements, and require due diligence, legal documentation, licence verification and, where appropriate, collateral or guarantees. Operations may follow DDA, Non DDA or Speed Remittance procedures with specified funding, audit/inspection and reporting obligations to ensure funds cover pipeline debits and compliance with KYC/AML and internal control requirements.
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