What changed
RBI has allowed AD Category-I banks that maintain Special Rupee Vostro Accounts under the July 11, 2022 circular to open an additional special current account for exporter constituents. This account is exclusively for settling export transactions in Indian rupees.
What it means for you
Banks can now offer exporters a dedicated current account for INR export proceeds, separate from other accounts, streamlining settlement under the rupee trade mechanism. This reduces operational friction for exporters dealing with countries using the INR settlement route, potentially boosting trade volumes.
What you must do
- Update internal policies to permit opening of additional special current accounts for exporters under the INR trade settlement framework.
- Ensure that the account is used exclusively for settlement of export transactions, as per RBI guidelines.
- Communicate this facility to exporter clients to facilitate smoother INR export settlements.
- Maintain clear segregation of this account for export transactions only, as per RBI guidelines.
Who it affects
AD Category-I banks handling Special Rupee Vostro Accounts, Exporters settling trade in Indian rupees, Banks' trade finance and operations teams
Can this additional current account be used for import settlements?
No, the circular specifies that this account is exclusively for settlement of export transactions, not imports.
Is this account mandatory for all exporters using INR trade?
The circular permits banks to open such an account, implying it is optional; exporters can continue using existing arrangements.