The Reserve Bank of India (RBI) on November 17, 2023, issued a notification regarding the International Trade Settlement in Indian Rupees (INR) – Opening of additional Current Account for export proceeds.
It is stated that in terms of an additional arrangement has been put in place for invoicing, payment, and settlement of exports/imports in INR through Special Rupee Vostro Accounts of the correspondent bank/s of the partner trading country maintained with AD Category-I banks in India.
The attention of AD Category-I banks is invited to Para 4.1 of circular DOR.CRE.REC.23/21.08.008/2022-23 dated April 19, 2022, on Opening of Current Accounts and CC/OD Accounts by Banks. In terms of this provision and to provide greater operational flexibility to the exporters, AD Category-I banks maintaining Special Rupee Vostro Account as per the provisions of the Reserve Bank circular dated July 11, 2022, are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions.
[Notification No. RBI/2023-2024/86 FED Circular No.08]
