RBI allows NRIs to invest rupee surplus in vostro accounts in government securities
For all authorised dealer category-I banks, the directions take effect immediately
The Reserve Bank of India (RBI) has stated that Non-Residents Indians (NRIs) maintaining special rupee vostro accounts (SRVA) can invest surplus balances in Central government‘s securities (G-secs).
Foreign entities open SRVA accounts with an Indian bank to settle international trade transactions in rupees.
The RBI notification read, “The NRI’s maintaining a SRVA for international trade settlement in Indian rupees, may invest their surplus balance in the account in Central government securities (including Treasury Bills).”
For all authorised dealer category-I banks, the directions take effect immediately and the banks must communicate it to their clients. The operational instructions have been incorporated in the ‘Master Directions’.
The Central Bank had recently simplified the process to open the SRVAs to boost the rupee trade.
The RBI Governor, Sanjay Malhotra, had said that India was working to popularize trade in its currency like other countries.