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Regulatory document · Reserve Bank of India

Special Rupee Vostro Accounts (SRVAs)

UR

The four dates on this rule

This rulebook is short, and the page is short with it. The real operative content of this circular is paragraphs 2 to 9. That is about 500 words once the header, salutation, five superseded circulars and the Annex table are set aside. The Annex only restates those same nine paragraphs. These eleven points cover every fact and duty the document states. Nothing more is there to quote without inventing content RBI never wrote.

At a glanceSRVA settles trade payments for exports and imports in rupees. A bank that handles foreign money may open an SRVA for its foreign branch or a bank outside India. These rules apply from the date of this circular.

Official RBI page

What it says

Must know

1. Who may open an SRVA

A bank that handles foreign money may open an SRVA for its foreign branch or a bank outside India.

2. What an SRVA does

SRVA settles trade payments for exports and imports in rupees.

3. How an SRVA is funded

Money can come in as remittances or transfers from other rupee accounts.

4. Other proceeds may sit here

Money from other allowed transactions can also stay in the SRVA.

5. Effective immediately

These rules apply from the date of this circular.

Do it

1. Extra account allowed too

The bank may also open a current account for that exporter or importer.

2. SRVA investments follow rules

Debt investments from SRVA funds follow a separate RBI rule for non-residents.

3. Follow FEMA reporting rules

Documenting and reporting SRVA transactions must follow existing FEMA rules.

4. Tell customers about this

The bank may inform its customers about this circular.

Background

1. Old circulars replaced

This circular replaces five earlier circulars on rupee vostro accounts.

2. Legal basis for this circular

This circular is issued under sections 10(4) and 11(1) of FEMA.

Where to go next