**Summary:**
RBI Circular No. 08 (RBI2023202486 FED), dated November 17, 2023, addresses all Scheduled Commercial Banks holding AD Category-I licenses regarding international trade settlement in Indian Rupees (INR). The circular pertains to the opening of additional current accounts for export proceeds. It references A.P. DIR Series Circular No. 10, dated July 11, 2022, which established an arrangement for invoicing, payment, and settlement of exports/imports in INR via Special Rupee Vostro Accounts. To provide exporters with greater operational flexibility, AD Category-I banks maintaining Special Rupee Vostro Accounts (as per the July 11, 2022 circular) are now permitted to open an additional special current account for their exporter constituents. This additional account is exclusively for the settlement of export transactions, in accordance with Para 4.1 of circular DOR.CRE.REC.2321.08.008202223 dated April 19, 2022. Puneet Pancholy, Chief General Manager, is the contact person.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI, which issued the circular.
INR: Indian Rupees, the currency involved in the international trade settlement.
Special Rupee Vostro Accounts: Accounts maintained by correspondent banks of partner trading countries with AD Category-I banks in India to facilitate international trade settlement in INR.
AD Category-I banks: Authorised Dealer Category-I banks, which are licensed to deal in foreign exchange.
A.P. DIR Series Circular No.10: A circular issued by the Reserve Bank of India on July 11, 2022, related to international trade settlement in INR.
DOR.CRE.REC.2321.08.008202223: Reference number of circular dated April 19, 2022, related to opening of current accounts by banks.
Puneet Pancholy: Chief General Manager at Reserve Bank of India.
Maharashtra: The state in India where the circular was issued from, specifically from Pune
RBI/2023-2024/86
FED Circular No.08 November 17, 2023
To
All Scheduled Commercial Banks (holding AD Category-I license)
Madam/Sir
International Trade Settlement in Indian Rupees (INR) – Opening of additional Current
Account for exports proceeds
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR
Series) Circular No.10 dated July 11, 2022, in terms of which an additional arrangement has
been put in place for invoicing, payment, and settlement of exports/imports in INR through
Special Rupee Vostro Accounts of the correspondent bank/s of the partner trading country
maintained with AD Category-I banks in India.
2. Further, attention of AD Category-I banks is invited to Para 4.1 of circular
DOR.CRE.REC.23/21.08.008/2022-23 dated April 19, 2022 on Opening of Current Accounts
and CC/OD Accounts by Banks. In terms of this provision and in order to provide greater
operational flexibility to the exporters, AD Category-I banks maintaining Special Rupee Vostro
Account as per the provisions of the Reserve Bank circular dated July 11, 2022 referred above
are permitted to open an additional special current account for its exporter constituent
exclusively for settlement of their export transactions.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager
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