{"id":231062,"date":"2023-03-15T20:18:17","date_gmt":"2023-03-15T14:48:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=231062"},"modified":"2023-03-15T20:18:17","modified_gmt":"2023-03-15T14:48:17","slug":"rbi-has-allowed-banks-from-18-countries-to-trade-in-rupee-government-in-rajya-sabha","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-has-allowed-banks-from-18-countries-to-trade-in-rupee-government-in-rajya-sabha\/","title":{"rendered":"RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article<\/span><b> \u201c<\/b><b>RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha<\/b><b>\u201d <\/b><span style=\"font-weight: 400;\">published in<\/span><b> The Hindu <\/b>on<b> 15th March 2023<\/b><\/p>\n<h2><b>What is the News?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Reserve Bank of India(RBI) has granted approvals to banks from 18 countries to open Special Rupee Vostro Accounts to settle international trade in rupees.<\/span><\/p>\n<h2><b>What are Special Rupee Vostro Accounts(SRVA)?<\/b><\/h2>\n<p><a href=\"https:\/\/forumias.com\/blog\/explained-vostro-accounts-and-how-they-facilitate-trade\/\"><b>Click Here to read<\/b><\/a><\/p>\n<h2><b>When did the Special Rupee Vostro Accounts(SRVA) arrangement start?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The process of SVRAs began in July 2022 when the RBI announced that it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports\/imports in INR [Indian rupees].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The announcement came against the backdrop of the commodities crisis triggered by the Western\u00a0<\/span><span style=\"font-weight: 400;\">sanctions against Russia.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the framework, all exports and imports may be denominated and invoiced in rupees, with the exchange rate between the currencies of the two trading partner countries to be market determined.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To settle these trade transactions, authorized Indian banks have to open Special Rupee Vostro accounts of correspondent banks of the partner trading country.<\/span><\/p>\n<h2><b>What are the benefits of SRVA arrangement?<\/b><\/h2>\n<p><b>Firstly,<\/b><span style=\"font-weight: 400;\"> it would promote the growth of global trade and support increasing international interest in the rupee.<\/span><\/p>\n<p><b>Secondly,<\/b><span style=\"font-weight: 400;\"> it will help India bypass sanctions that prevent the use of a global currency such as the US dollar for trade with certain countries.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cRBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha\u201d published in The Hindu on 15th March 2023 What is the News? The Reserve Bank of India(RBI) has granted approvals to banks from 18 countries to open Special Rupee Vostro Accounts to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-has-allowed-banks-from-18-countries-to-trade-in-rupee-government-in-rajya-sabha\/\">Continue reading <span class=\"screen-reader-text\">RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10498],"class_list":["post-231062","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/231062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=231062"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/231062\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=231062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=231062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=231062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}