22 Countries Open Special Rupee Vostro Accounts In Indian Banks

India's growing economic influence on the global stage, 22 countries have opened special rupee vostro accounts in Indian banks, ANI reported.

Vostro accounts serve as a means for domestic banks to cater to the global banking requirements of their international clients. In a written response in Lok Sabha, Rajkumar Ranjan Singh, the Union Minister of State (External Affairs), disclosed a list of countries that have established such special accounts. The countries on the list encompass Belarus, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, Bangladesh, Maldives, Kazakhstan, and the United Kingdom.

"Government is engaged with the Indian trading community including the Small and Medium Enterprises (SMEs) to simplify the administrative procedures to implement this mechanism," the minister said.

The Reserve Bank of India implemented a policy enabling domestic currency transactions last year in an effort to boost international trade with a focus on Indian exports and raise interest in the rupee.

The internationalisation of the rupee gained momentum after the Reserve Bank of India (RBI) unveiled a mechanism to facilitate payment settlements for international trade in rupees, with a particular focus on India's exports. Effective from July 11, 2022, the RBI granted permission for invoicing and payments in Indian Rupee for international trade transactions.