RBI Enables Foreign Entities to Invest in Indian Government Securities through SRVA
The Reserve Bank of India allows non-residents with special rupee vostro accounts (SRVA) to invest surplus balances in central government securities. This move, aimed at enhancing rupee-based trade, facilitates international trade settlements in Indian Rupees. The directive is effective immediately, reflecting RBI's efforts to promote rupee trade.
- Country:
- India
The Reserve Bank of India (RBI) announced on Tuesday that non-residents holding special rupee vostro accounts (SRVA) can now invest their surplus balances in central government securities, including Treasury Bills.
This new development allows foreign entities maintaining SRVA for international trade settlements in Indian rupees to utilize their surplus balances for investment in these securities, according to the central bank's latest notification.
The RBI's directive, which is effective immediately, has been communicated to all authorized dealer category-I banks. This step aligns with the RBI's recent measures to simplify SRVA account opening, aiming to bolster rupee trade as India promotes trade in its own currency.
(With inputs from agencies.)
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