{"id":291401,"date":"2024-04-18T17:10:31","date_gmt":"2024-04-18T11:40:31","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=291401"},"modified":"2024-04-18T17:10:31","modified_gmt":"2024-04-18T11:40:31","slug":"special-rupee-vostro-account-srva","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/special-rupee-vostro-account-srva\/","title":{"rendered":"Special Rupee Vostro Account (SRVA)"},"content":{"rendered":"

Source<\/strong>\u2013 This post on Special Rupee Vostro Account (SRVA)<\/strong> \u00a0is based on the article “Payment mechanism for traders importing pulses from Myanmar simplified: Govt”<\/strong><\/a>publi<\/a>shed in \u201cEconomic times\u201d<\/strong>\u00a0on 16th April 2024.<\/p>\n

Why in the News?<\/h2>\n

India has simplified the payment mechanism for traders importing pulses from Myanmar by facilitating them to use the Rupee\/Kyat direct payment system through the Special Rupee Vostro Account (SRVA).<\/p>\n

About Special Rupee Vostro Account (SRVA)<\/h2>\n

\"Vostro<\/p>\n

1. About:<\/strong> SRVA is an additional arrangement<\/span> to the existing system of settlement for international trade. It facilitates trade in Indian Rupees (INR) with partner countries.<\/span><\/p>\n

2. The goal is to promote exports, facilitate imports, and reduce dependence on hard (freely convertible) currencies<\/span> like the US Dollar or Pound Sterling.<\/p>\n

3. Unlike the regular Rupee Vostro Account, SRVA requires prior approval from the Reserve Bank of India (RBI) before opening.<\/span><\/p>\n

4. SRVA Mechanism: <\/strong><\/p>\n

a) Transactions for both exports and imports must be invoiced exclusively in INR<\/span>.<\/p>\n

b) The exchange rate for converting INR with the partner country’s currency is determined by the market.<\/p>\n

c) All trade settlements are conducted in INR<\/span>.<\/p>\n

d) Authorized domestic dealer banks (AD banks)<\/span>, which are permitted to deal in foreign exchange, are responsible for opening SRVA accounts for the correspondent banks in the partner countries.<\/p>\n

5. Benefits of SRVA:<\/strong><\/p>\n

a) It reduces dependence<\/span> on foreign exchanges (like the US dollar).<\/p>\n

b) It helps domestic banks gain wider access<\/span> to foreign financial markets.<\/p>\n

c) It also facilitates international banking services<\/span> without physical presence abroad.<\/p>\n

About Vostro account<\/h2>\n

1. A Vostro account is an account that a domestic bank holds for a foreign bank in the domestic bank\u2019s currency. For eg. in the case of India, it is the rupee.<\/p>\n

2. The RBI allowed nine such accounts, including IndusInd Bank and Uco Bank.<\/p>\n

UPSC Syllabus: Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source\u2013 This post on Special Rupee Vostro Account (SRVA) \u00a0is based on the article “Payment mechanism for traders importing pulses from Myanmar simplified: Govt”published in \u201cEconomic times\u201d\u00a0on 16th April 2024. Why in the News? India has simplified the payment mechanism for traders importing pulses from Myanmar by facilitating them to use the Rupee\/Kyat direct payment… Continue reading Special Rupee Vostro Account (SRVA)<\/span><\/a><\/p>\n","protected":false},"author":10366,"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],"tags":[11872,10596],"class_list":["post-291401","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","tag-economic-times","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/291401","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\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=291401"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/291401\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=291401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=291401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=291401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}