Special Rupee Vostro Accounts (SRVAs), JULY 17, 2026

The Reserve Bank of India (“RBI”) issued a circular¹ consolidating and rationalising the existing framework governing Special Rupee Vostro Accounts (“SRVAs”) used for settlement of cross-border transactions in Indian Rupees. The circular supersedes earlier instructions issued between 2022 and 2025.

Scope of the Consolidated Framework

The circular brings the applicable provisions relating to the opening, funding, utilisation, investment, documentation and reporting of SRVAs into a single consolidated framework. It replaces all prior piecemeal instructions on the subject.

Opening and Use of SRVAs

Under the revised framework, Authorised Dealer Category-I (“AD Category-I”) banks may open SRVAs with overseas branches of banks or with banks incorporated outside India without prior RBI approval.

Permissible Transactions

SRVAs may be used for settlement of the following types of cross-border transactions:

• Cross-border exports in INR
• Cross-border imports in INR
• Other permissible current and capital account transactions under FEMA

Funding Sources

The accounts may be funded through:

• Inward remittances
• Transfers from other repatriable INR accounts
• Proceeds of permissible FEMA transactions

Additional Accounts and Investment of Balances

AD Category-I banks maintaining SRVAs may also open additional current accounts for exporters and importers for trade-settlement purposes.

Investment of SRVA balances in debt instruments will be subject to the applicable RBI framework governing non-resident investment in debt instruments.

Key Takeaway

The circular provides a single consolidated framework for SRVAs, improving clarity for AD Category-I banks and overseas banking partners undertaking INR-based cross-border transactions.

Last Updated on 21 August, 2026