International trade settlement in Indian rupees enabled via Special Rupee Vostro Accounts, subject to approvals and compliance. AD banks may open Special Rupee Vostro Accounts for correspondent banks to enable invoicing, payment and settlement of exports and imports in INR; exchange rates are market determined. Indian importers shall pay into these accounts and exporters shall be paid from their balances. Usual trade documentation, reporting and Master Direction conditions apply for advances, set offs and bank guarantees. AD banks must obtain Reserve Bank approval, verify correspondent bank jurisdictions against FATF guidance, and comply with FEMA reporting; the instructions are effective immediately.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
International trade settlement in Indian rupees enabled via Special Rupee Vostro Accounts, subject to approvals and compliance.
AD banks may open Special Rupee Vostro Accounts for correspondent banks to enable invoicing, payment and settlement of exports and imports in INR; exchange rates are market determined. Indian importers shall pay into these accounts and exporters shall be paid from their balances. Usual trade documentation, reporting and Master Direction conditions apply for advances, set offs and bank guarantees. AD banks must obtain Reserve Bank approval, verify correspondent bank jurisdictions against FATF guidance, and comply with FEMA reporting; the instructions are effective immediately.
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