RBI allows extra current account for INR export settlements
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2023-2024/86 · issued 17 Nov 2023 · ~1 min read
Quick answerRBI now permits AD Category-I banks to open an additional special current account for exporters to settle export transactions under the INR trade settlement framework, enhancing operational flexibility.
The rule, in the simplest words
AD Category-I banks can open an extra special current account for exporters to settle INR export transactions.
This account is separate from other accounts and is used exclusively for INR export settlements.
Banks must maintain clear segregation of this account for export transactions only.
How it plays out — a real example
A branch operations officer in Indore, working at a bank that maintains Special Rupee Vostro Accounts, helps an exporter open an additional special current account to settle their INR export transactions. This dedicated account streamlines the settlement process, reducing operational friction and potentially boosting trade volumes. The officer ensures that the account is used exclusively for export transactions, as per RBI guidelines.
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.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
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
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 04:09 IST
Status change: withdrawn11 Jul 2026, 02:13 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 Read the original circular — full text as issued by RBI
RBI/2023-2024/86
FED Circular No.08
November 17, 2023
To
All Scheduled Commercial Banks (holding AD Category-I license)
Madam/Sir
International Trade Settlement in Indian Rupees (INR) – Opening of additional Current Account for exports proceeds
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.10 dated July 11, 2022 , in terms of which 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.
2. Further, 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 in order 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 referred above are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-2024/86 · issued 17 Nov 2023. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12568&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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