International Trade Settlement in India Rupees

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....eriod, if any, allowed by the Authorised Dealer. International Trade Invoicing and Settlement in Indian Rupees (INR) [Regulation 17 of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 ] • The Authorised Dealer may be guided by the extant guidelines on the broad framework as well as instructions issued by the Reserve Bank in this regard, from time to time. RBI, vide A.P. (DIR Series) Circular No. 10 dated 11-07-2022 has introduced system of International Trade Settlement in Indian Rupees for exports and imports. Invoicing and settlement can be done in Indian Rupees by AD Bank through special rupee Vostro Account . Provisions have been made for receiving ad....

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....Vostro Accounts. Accordingly, for settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. •  In order to allow settlement of international trade transactions through this arrangement, it has been decided that: • Indian importers undertaking imports through this mechanism shall make payment in INR which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier. • Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid th....

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....t exports under Master Direction on Export of Goods and Services 2016 (as amended from time to time). In order to ensure that the advance is released only as per the instructions of the overseas importer, the Indian bank maintaining the Special Vostro account of its correspondent bank shall, apart from usual due diligence measures, verify the claim of the exporter with the advice received from the correspondent bank before releasing the advance. Setting-off of export receivables against import payables  • 'Set-off' of export receivables against import payables in respect of the same overseas buyer and supplier with facility to make/receive payment of the balance of export receivables/import payables, if any, t....

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....been decided to also permit investment of these balances in non-convertible debentures/bonds and commercial papers issued by an Indian company. [Para 2 A.P. (DIR Series) Circular No. 13 dated 03-10-2025] • Persons resident outside India that maintain a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees in terms of A.P. (DIR Series) Circular No. 10 dated July 11, 2022 may invest their rupee surplus balance in the aforesaid account in Central Government Securities (including Treasury Bills). [Para 2 of A.P. (DIR Series) Circular No. 09 dated 12-08-2025] Reporting Requirements  • Reporting of cross-border transactions need to be done in terms of the extant gu....