Vostro account controls: prior RBI approval, strict credit funding procedures and mandated collateral, audit and reporting requirements. Prior Reserve Bank approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses; the memorandum prescribes permitted uses (primarily inward personal remittances), three funding procedures (DDA, Non DDA, Speed Remittance) with specified collateral and audit/inspection regimes, separate rupee and foreign currency accounts, strict credit basis operations with no overdrafts, documentary and AML/KYC due diligence, prudential caps and extensive internal control, monitoring and reporting (Statements A-E and annual Board approved review) to ensure timely funding, prevent concealed overdrafts and maintain compliance.
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Provisions expressly mentioned in the judgment/order text.
Vostro account controls: prior RBI approval, strict credit funding procedures and mandated collateral, audit and reporting requirements.
Prior Reserve Bank approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses; the memorandum prescribes permitted uses (primarily inward personal remittances), three funding procedures (DDA, Non DDA, Speed Remittance) with specified collateral and audit/inspection regimes, separate rupee and foreign currency accounts, strict credit basis operations with no overdrafts, documentary and AML/KYC due diligence, prudential caps and extensive internal control, monitoring and reporting (Statements A-E and annual Board approved review) to ensure timely funding, prevent concealed overdrafts and maintain compliance.
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