INR Trade Settlement: Current Account Expanded for Both Exports and Imports
Current · Source: Reserve Bank of India · RBI/2024-2025/43 · issued 11 Jun 2024 · ~2 min read
Quick answerRBI now allows AD Category-I banks to open an additional special current account for constituents to settle both export and import transactions in INR, extending the earlier facility that was limited to exports only.
The rule, in the simplest words
AD Category-I banks can open an additional special current account for export and import transactions in INR.
This account is for constituents to settle both export and import transactions, simplifying processes and reducing account management overhead.
Banks must update internal policies and systems, notify constituents, and train staff on handling import settlements.
How it plays out — a real example
Rahul, a branch operations officer in Indore, is happy to inform his clients that they can now use a single additional current account for both export and import transactions in INR. This means they can easily settle their gold exports and imports without having to manage multiple accounts. Rahul's team has been trained to handle import settlements, ensuring a smooth experience for their clients.
What changed
Previously, AD Category-I banks maintaining Special Rupee Vostro Accounts could open an additional current account only for export settlements. Now, this facility is extended to cover both export and import transactions, providing greater operational flexibility.
What it means for you
Banks can now offer a single additional current account for constituents to handle both sides of INR trade settlements, simplifying processes and reducing account management overhead. This move supports the broader push for internationalisation of the rupee and may increase INR-denominated trade volumes.
What you must do
Update internal policies and systems to allow the additional current account for both export and import settlements.
Notify your constituents about the expanded facility and revised operational guidelines.
Ensure compliance with the original Special Rupee Vostro Account framework from the July 11, 2022 circular.
Train staff on handling import settlements through the new account to avoid procedural errors.
Who it affects
AD Category-I banks maintaining Special Rupee Vostro Accounts, Exporters and importers using INR settlement for trade, Bank operations teams handling trade finance and current accounts
❓ Common questions
Can we open multiple additional current accounts under this circular?
The circular permits opening one additional special current account per constituent for both export and import settlements. It does not explicitly allow multiple accounts, so banks should adhere to the single-account provision unless further guidance is issued.
Does this replace the earlier circular on export-only accounts?
No, this circular extends the earlier facility (FED Circular No. 08 dated November 17, 2023) by adding import settlements to the scope. The earlier circular remains relevant for the export-only provision, but now the account can be used for both purposes.
Are there any new reporting requirements for this account?
The circular does not introduce new reporting requirements. Banks must continue to follow existing reporting norms under the Special Rupee Vostro Account framework and the July 11, 2022 circular.
📜 Read the original circular — full text as issued by RBI
RBI/2024-2025/43
FED Circular No. 11
June 11, 2024
All Scheduled Commercial Banks
(holding AD Category-I license)
Madam/Sir
International Trade Settlement in Indian Rupees (INR)
– Opening of additional Current Account for settlement of trade transactions
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to FED Circular No. 08 dated November 17, 2023 , in terms of which, AD Category-I banks maintaining Special Rupee Vostro Account vide A.P. (DIR Series) Circular No.10 dated July 11, 2022 on International Trade Settlement in Indian Rupees (INR) were permitted to open an additional special current account for its constituents, exclusively for settlement of export transactions.
2. On a review, and to provide operational flexibility, the facility of opening an additional special current account by the AD Category-I banks (maintaining Special Rupee Vostro Account in terms of the RBI circular dated July 11, 2022 referred above) for its constituents may be extended for settlement of their export as well as import transactions.
3. The contents of this circular may be brought to the notice of your constituents.
Yours faithfully
(N. Senthil Kumar)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-2025/43 · issued 11 Jun 2024. The plain-English explanation above is BankPulse’s own independent summary.
Update internal policies and systems to allow the additional current account for both export and import settlements.
Train staff on handling import settlements through the new account to avoid procedural errors.
📜 Compliance
Notify your constituents about the expanded facility and revised operational guidelines.
Ensure compliance with the original Special Rupee Vostro Account framework from the July 11, 2022 circular.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an Operations officer at a bank this circular applies to (AD Category-I banks maintaining Special Rupee Vostro Accounts, Exporters and importers using INR settlement for trade, Bank operations teams handling trade finance and current accounts), your first concrete step on “INR Trade Settlement: Current Account Expanded for Both Exports and Imports” is: “Update internal policies and systems to allow the additional current account for both export and import settlements.” (RBI issued this 11 Jun 2024).
Circular: RBI/2024-2025/43 -- INR Trade Settlement: Current Account Expanded for Both Exports and Imports
Issued: 11 Jun 2024
Action required: Update internal policies and systems to allow the additional current account for both export and import settlements.
Action required: Notify your constituents about the expanded facility and revised operational guidelines.
Action required: Ensure compliance with the original Special Rupee Vostro Account framework from the July 11, 2022 circular.
Action required: Train staff on handling import settlements through the new account to avoid procedural errors.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=12693&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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