RBI/2025-26/91, A.P. (DIR Series) Circular No. 14, dated October 03, 2025, addresses International Trade Settlement in Indian Rupees (INR). It is directed to all Authorised Dealer Category-I banks.
The circular refers to A.P. (DIR Series) Circular No.10 dated July 11, 2022, stating that balances in Special Rupee Vostro Accounts can be used for ‘Investment in Government Treasury Bills, Government securities, etc.’, subject to extant guidelines, prescribed limits, FEMA, and similar statutory provisions.
Referring to AP DIR Circular No.13 dated October 03, 2025, AD banks may permit investment of surplus balances in Special Rupee Vostro Accounts also in non-convertible debentures/bonds and commercial papers issued by an Indian company in terms of guidelines and limits prescribed vide the referred circular dated October 03, 2025.
The instruction is applicable with immediate effect. The circular has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999).
Contact: Foreign Exchange Department, Central Office, 5th Floor, Amar Building, Sir P.M.Road, Fort, Mumbai - 400 001. Telephone: (91-22) 22603000, Email Id - fedcotrade@rbi.org.in.
Key Entities Referenced
Foreign Exchange Management Act (FEMA), 1999: The legal framework under which the directions in the circular are issued.
Reserve Bank of India: Issuer of the circular; the primary regulator in the context.
A.P. (DIR Series) Circular No.10 dated July 11, 2022: Referenced circular regarding Special Rupee Vostro Accounts.
International Trade Settlement in Indian Rupees (INR): The subject of the circular.
Special Rupee Vostro Accounts: The financial instrument mentioned in the circular.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2025-26/91
A.P. (DIR Series) Circular No. 14 October 03, 2025
To,
All Authorised Dealer Category-I banks
Madam / Sir,
International Trade Settlement in Indian Rupees (INR)
Attention of Authorised Dealer Category – I banks (AD banks) is invited to Para 8(c) of
A.P. (DIR Series) Circular No.10 dated July 11, 2022 wherein it has been indicated that
the balance in Special Rupee Vostro Accounts can be used for: ‘Investment in
Government Treasury Bills, Government securities, etc. in terms of extant guidelines and
prescribed limits, subject to FEMA and similar statutory provision’.
2. In the light of the directions issued through AP DIR Circular No.13 dated October 03,
2025, AD banks may permit investment of surplus balances in the Special Rupee Vostro
Accounts also in non-convertible debentures/bonds and commercial papers issued by
an Indian company in terms of guidelines and limits prescribed vide the referred circular
dated October 03, 2025.
3. The above instruction is applicable with immediate effect. AD banks may bring the
contents of this circular to the notice of their constituents and customers concerned.
4. 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,
(Latha Radhakrishnan)
General Manager-in-Charge
िवदेशी मुद्रा िवभाग, केंद्रीय कायार्लय, 5वी ंमंिजल, अमर भवन, सर पी.एम.रोड, फोटर् मुंबई - 400 001
Foreign Exchange Department, Central Office, 5th Floor, Amar Building, Sir P.M.Road, Fort, Mumbai – 400 001
Telephone: (91-22) 22603000, Email Id – fedcotrade@rbi.org.in
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