The Reserve Bank of India had announced guidelines on overseas trade in Indian Rupee in July. In part, this is also aimed at curtailing India’s dollar dependence for trade, and indirectly strengthen the domestic currency.

 

On the lines of an arrangement being worked out with Russia, India is in talks with Sri Lanka, the Maldives and multiple south east Asian, African and Latin American countries to initiate trading in the Indian Rupee.

The countries in these geographies have shown interest in opening Special Rupee Vostro or SRV accounts,

 A Vostro account is an account held by a bank that allows the customers to deposit money on behalf of another bank.

he first country to open a special Rupee Vostro account is Russia, which has increased supply of discounted crude to India post the Ukraine war. In September, government-owned UCO Bank received the RBI’s approval to open a special vostro account with Gazprombank of Russia and in October, Sberbank and VTB Bank – the largest and second-largest banks of Russia – opened special vostro accounts in their respective branches in Delhi.

 

Reserve Bank Governor : Shaktikanta Das.

Russian Currency : Russian ruble.

Malidives Currency : Rufiya.

Srilanka Currency : Srilankan Rupees.