These accounts were introduced to promote the use of international trade in the rupee

PTI New Delhi

The Reserve Bank of India Tuesday said banks no longer need its approval to open Special Rupee Vostro Accounts. The RBI had allowed banks in 2022 to open Special Rupee Vostro Accounts with prior approval for settling cross-border trade transactions. The change is effective immediately, the central bank said.

"AD (Authorised Dealer) banks can now open SRVAs (Special Rupee Vostro Accounts) of correspondent banks without referring to the Reserve Bank of India," the regulator said in a release. "The above change in procedure will considerably quicken the process for opening of SRVAs." The Special Rupee Vostro Accounts were introduced to promote the use of international trade in the rupee, initially for settlement of export transactions and then also for imports starting in June last year. 

RBI MPC decision today

RBI Governor Sanjay Malhotra will announce the third bi-monthly monetary policy of this fiscal on Wednesday amid expectations of pause on interest rate after three consecutive reduction totalling 100 basis points. Malhotra will announce the resolution of the Monetary Policy Committee (MPC) at 10 am. The six-member panel, headed by Malhotra, started the three-day deliberation on the monetary policy on Monday.