**Policy Summary: Investment in Government Securities by Persons Resident Outside India through Special Rupee Vostro Accounts**
**Issuing Authority:** Reserve Bank of India (RBI)
**Circular Number:** A.P. DIR Series Circular No. 09
**Date:** August 12, 2025
**Subject:** Investment in Government Securities by Persons Resident Outside India through Special Rupee Vostro Accounts (SRVA).
**Purpose:** To allow persons resident outside India who maintain a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees to invest their rupee surplus balance in Central Government Securities, including Treasury Bills. This is further detailed in the Master Direction Reserve Bank of India - Non-resident Investment in Debt Instruments Directions, 2025 dated January 07, 2025.
**Key Provisions:**
* Persons resident outside India maintaining SRVAs as per A.P. DIR Series Circular No. 10 dated July 11, 2022, can invest surplus rupee balances in Central Government Securities and Treasury Bills.
* Operational instructions are incorporated in the updated Master Direction.
**Effective Date:** Immediate
**Regulatory Basis:** Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). This circular is without prejudice to other required permissions/approvals.
**Addressee:** All Authorised Dealer Category-I (AD Category-I) banks. AD Category I banks are requested to bring the circular contents to the attention of their constituents and concerned customers.
**Contact Information:**
Financial Markets Regulation Department,
Central Office Building, 9th Floor,
Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India.
Tel: +91 22 2260 1000,
Email: cgmfmrdrbi.org.in
Website: www.rbi.org.in
Key Entities Referenced
Reserve Bank of India: The central bank of India and the issuer of this circular.
Foreign Exchange Management Act, 1999: Indian legislation governing foreign exchange regulations.
Foreign Exchange Management Debt Instruments Regulations, 2019: Regulations pertaining to debt instruments under the Foreign Exchange Management Act.
Foreign Exchange Management Deposit Regulations, 2016: Regulations pertaining to deposits under the Foreign Exchange Management Act.
Master Direction Reserve Bank of India Nonresident Investment in Debt Instruments Directions, 2025: A set of directions issued by the Reserve Bank of India regarding nonresident investment in debt instruments.
Special Rupee Vostro Account: A special account maintained for international trade settlement in Indian Rupees.
Central Government Securities: Securities issued by the central government of India.
Mumbai, Maharashtra: City in India where the Central Office Building of the Reserve Bank of India is located.
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2025-26/72
A.P. (DIR Series) Circular No. 09 August 12, 2025
To,
All Authorised Dealer Category-I banks
Madam / Sir
Investment in Government Securities by Persons Resident Outside India
through Special Rupee Vostro account
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule
1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019
notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019, and the
Foreign Exchange Management (Deposit) Regulations, 2016 notified, vide Notification
No. FEMA. 5(R)/2016-RB dated April 01, 2016 as amended from time to time and the
relevant Directions issued thereunder. A reference is also invited to the Master
Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments)
Directions, 2025 dated January 07, 2025 (hereinafter “Master Direction”).
2. Persons resident outside India that maintain a Special Rupee Vostro Account
(SRVA) for international trade settlement in Indian Rupees in terms of A.P. (DIR
Series) Circular No. 10 dated July 11, 2022 may invest their rupee surplus balance in
the aforesaid account in Central Government Securities (including Treasury Bills).
3. Necessary operational instructions in this regard have been incorporated in the
Master Direction; and the updated Master Direction is issued herewith.
4. These directions shall come into immediate effect.
5. AD Category – I banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
वित्तीय बाज़ार विवियमि विभाग,केंद्रीय कायाालय भिि, िौिी ींमींविल, शहीद भगत व ींह मागा, फोर्ा, म ींबई–400001.भारत
फोि: (91-22) 2260 1000, ई-मेल: cgmfmrd@rbi.org.in
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, e-mail- cgmfmrd@rbi.org.in
हिन्दी आसान िै, इसका प्रयोग बढ़ाइए6. The Directions contained in this circular have been issued under sections 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions/approval, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
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