The Reserve Bank of India (RBI) on November 17, 2023, issued a notification regarding International Trade Settlement in Indian Rupees - Opening of an additional Current Account for export proceeds
The following has been stated namely: -
• This has a reference to Circular No.10 dated July 11, 2022, where 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.
• It has a further reference to Para 4.1 of circular DOR.CRE.REC.23/21.08.008/2022-23 dated April 19, 2022, which specified the Opening of Current Accounts and CC/OD Accounts by Banks.
• It states that 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.
[Circular No. RBI/2023-2024/86 FED Circular No.08]
