Rupee vostro account regulation mandates prior central approval, strict KYC/AML, collateral and reporting controls. 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; banks must perform due diligence, maintain separate credit only accounts per arrangement, prevent overdrafts, ensure Nostro credit before Rupee crediting, apply DDA/Non DDA/Speed Remittance procedures with prescribed collateral and audit or representative inspections, enforce KYC/AML/CFT compliance, and submit specified periodic statements and an annual Board approved review to the Reserve Bank.
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Provisions expressly mentioned in the judgment/order text.
Rupee vostro account regulation mandates prior central approval, strict KYC/AML, collateral and reporting controls.
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; banks must perform due diligence, maintain separate credit only accounts per arrangement, prevent overdrafts, ensure Nostro credit before Rupee crediting, apply DDA/Non DDA/Speed Remittance procedures with prescribed collateral and audit or representative inspections, enforce KYC/AML/CFT compliance, and submit specified periodic statements and an annual Board approved review to the Reserve Bank.
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