Home › Circulars › RBI/2026-27/203

Special Rupee Vostro Accounts (SRVAs) Consolidated

Not yet independently checked — please confirm with the official RBI source below
Source: Reserve Bank of India · RBI/2026-27/203 · issued FY 2026-27 · ~2 min read
Quick answerRBI has consolidated all prior SRVA circulars into one master circular effective immediately. AD banks can open SRVAs for overseas branches or banks without prior RBI approval, settle all permissible current and capital account transactions, and must update the FEDAI SRVA directory periodically.
The rule, in the simplest words
How it plays out — a real example

Rajesh, head of trade finance at an AD bank, receives a request from a Sri Lankan bank to open an SRVA. He checks the new circular, finds no need for RBI approval, opens the account the same day, and instructs his team to update the FEDAI directory within the week. He also notes the surplus can be invested in short-term bonds, improving the bank's yield on the balance.

What changed

RBI superseded five earlier circulars (from July 2022 to October 2025) with a single consolidated circular. Key changes include: SRVAs can now be opened without prior RBI approval, surplus balances can be invested in debt instruments per the 2025 Master Direction, and a new requirement to periodically update SRVA details in the FEDAI directory.

What it means for you

Banks get a simplified, unified framework for SRVAs, reducing compliance burden from tracking multiple circulars. The ability to open SRVAs without RBI approval speeds up onboarding of overseas correspondent banks. Investment of surplus in debt instruments offers better yield management, but banks must ensure strict adherence to FEMA reporting and documentation.

What you must do

Who it affects

All Authorised Dealer Category-I banks, Overseas correspondent banks with SRVAs in India, Exporters and importers using INR trade settlement, Compliance and trade finance departments of AD banks

❓ Common questions

Do we need RBI approval to open a new SRVA now?

No. The circular subsumes the earlier requirement for prior RBI approval. AD banks can open SRVAs for their overseas branches or foreign banks directly under Regulation 7(1) of FEMA (Deposit) Regulations, 2016.

What transactions can be settled through SRVA?

All permissible current and capital account transactions under FEMA, including export/import invoicing and settlement, can be routed through SRVA. Additionally, AD banks can open a separate current account for exporters/importers exclusively for trade settlement.

Is there any new reporting requirement?

Yes. AD banks must periodically update the details of SRVAs held by overseas correspondent banks in the 'SRVA directory' published by FEDAI. This is a new addition not present in earlier circulars.

📜 Read the original circular — full text as issued by RBI
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(DIR Series) Circular No.19 July 17, 2026 To, All Authorised Dealer Category-I banks Madam/Sir Special Rupee Vostro Accounts (SRVAs) Attention of authorised dealer banks is invited to the following circulars on International Trade Settlement in Indian Rupees (INR): A.P. (DIR Series) Circular No. 10 dated July 11, 2022 , Circular No. 08 dated November 17, 2023 , Circular No. 11 dated June 11, 2024 , A.P. (DIR Series) Circular No. 08 dated August 05, 2025 , and A.P. (DIR Series) Circular No. 14 dated October 03, 2025 . 2. On a review, it has been decided to consolidate and rationalise the instructions contained in above referred circulars. Accordingly, this circular is being issued in supersession of the above referred circulars. The changes flowing from the above circulars are indicated in Annex . 3. AD banks in India may open Special Rupee Vostro Accounts (SRVAs) of its branch outside India or a bank resident outside India, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016 . 4. The settlement of cross-border trade transactions through SRVA is an additional arrangement for invoicing, payment and settlement of exports and imports in INR. Additionally, all permissible capital and current account transactions under FEMA may be settled through the SRVA. Further, AD banks maintaining SRVA are also permitted to open additional current account for exporter/importer, exclusively for settlement of export/import transactions. 5. SRVA may be funded by way of inward remittances or transfer from other repatriable INR accounts in terms of Foreign Exchange Management (Deposit) Regulations, 2016 . The proceeds accrued through permissible current and capital account transactions under FEMA can also be held in the SRVA. 6. Investments in debt instruments out of the balances held in the SRVA shall be governed by the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 , as amended from time to time. 7. Documentation and reporting of cross-border transactions through SRVA shall be done in terms of the extant guidelines under FEMA 1999, issued from time to time. The details of SRVA held by overseas correspondent banks with AD banks in India may be updated periodically in the ‘SRVA directory’, published by FEDAI. 8. The above instructions shall come into force with immediate effect and AD banks may bring the contents of this Circular to the notice of their constituents and customers concerned. 9. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (N. Senthil Kumar) Chief General Manager Annex - List of changes/consolidation undertaken in the present circular dated July 17, 2026 Sl. No. A.P. (DIR Series) Circular No. 10 dated July 11, 2022 Corresponding para of this circular 1. Para 1 - Introduction Para 2 - Broad framework for cross border transactions; Para 3 - Procedure for opening of SRVA and settlement in INR Subsumed in Para 4. Subsumed in Para 4. Subsumed in Para 3 & 4. 2. Para 5 - Advance against exports Para 6 - Setting-off export receivables Para 7 - Bank Guarantee Not part of this circular. (AD bank may be guided by extant instructions as amended from time to time.) 3. Para 8 - Use of surplus balance Subsumed in Para 4 & 6. 4. Para 4 - Documentation Para 9 - Reporting Requirement Subsumed in Para 7. 5. Para 10 - Approval Process Superseded vide A.P. (DIR Series) Circular No. 08 dated August 5, 2025 . 6. No mention New addition: Publication in SRVA Directory on FEDAI Website. Sl. No. Circular No. 08 dated November 17, 2023 and Circular No. 11 dated June 11, 2024 Corresponding para of this circular 7. Opening of additional current account for exporter and importer Subsumed in Para 4. Sl. No. A.P. (DIR Series) Circular No. 08 dated August 05, 2025 Corresponding para of this circular 8. Opening of SRVA without referring to RBI for approval Subsumed in Para 3. Sl. No. A.P. (DIR Series) Circular No. 14 dated October 03, 2025 Corresponding para of this circular 9. Investment of surplus in NCDs, bonds and CPs Subsumed in Para 6. 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/203 · issued FY 2026-27. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Communicate the consolidated framework to all relevant branches and customers involved in cross-border INR trade settlement.
📜 Compliance
  • Update internal SRVA policies to reference only this circular (RBI/2026-27/203) and remove references to superseded circulars.
  • Ensure SRVA opening procedures no longer require prior RBI approval; document the process per Regulation 7(1) of FEMA (Deposit) Regulations, 2016.
  • Train staff on the new FEDAI SRVA directory update requirement and set up periodic reporting schedules.
  • Review investment of SRVA surplus in debt instruments to align with the 2025 Master Direction on Non-resident Investment in Debt Instruments.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Authorised Dealer Category-I banks, Overseas correspondent banks with SRVAs in India, Exporters and importers using INR trade settlement, Compliance and trade finance departments of AD banks), your first concrete step on “Special Rupee Vostro Accounts (SRVAs) Consolidated” is: “Update internal SRVA policies to reference only this circular (RBI/2026-27/203) and remove references to superseded circulars.” (RBI issued this FY 2026-27).

  1. Circular: RBI/2026-27/203 -- Special Rupee Vostro Accounts (SRVAs) Consolidated
  2. Issued: FY 2026-27
  3. Action required: Update internal SRVA policies to reference only this circular (RBI/2026-27/203) and remove references to superseded circulars.
  4. Action required: Ensure SRVA opening procedures no longer require prior RBI approval; document the process per Regulation 7(1) of FEMA (Deposit) Regulations, 2016.
  5. Action required: Train staff on the new FEDAI SRVA directory update requirement and set up periodic reporting schedules.
  6. Action required: Review investment of SRVA surplus in debt instruments to align with the 2025 Master Direction on Non-resident Investment in Debt Instruments.
  7. Action required: Communicate the consolidated framework to all relevant branches and customers involved in cross-border INR trade settlement.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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.

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BankPulse Compliance Evidence Pack — generated 17 Jul 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13581&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. 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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