The Reserve Bank of India (RBI) on December 22, 2022, updates Master Direction – Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses.
Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the Authorised Category I banks enter into tie-ups with the non-resident Exchange Houses to open and maintain their Vostro Accounts.
Reserve Bank issues directions to Authorised Persons, including Authorised Category I banks, under Section 11 of the Foreign Exchange Management Act, 1999, in regard to conducting foreign exchange business in compliance with the provisions of the Act and any rules, regulations, notifications, directions or orders made there under.
The directions relating to the Opening and Maintenance of Rupee/ Foreign Currency Vostro Accounts of Non-resident Exchange Houses in India are being issued in a consolidated form through the Master Direction enclosed herewith. Reporting instructions can be found in Master Direction on Reporting. It may be noted that whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the rules, regulations, notifications, directions, or orders or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/constituents.
The Master Direction is attached to the document and shall be amended suitably simultaneously.
[Notification No. RBI/FED/2015-16/16]
