New Delhi: The government on Friday said so far the RBI has permitted 123 correspondent banks from 30 trading partner countries to open 156 Special Rupee Vostro Accounts (SRVAs) with 26 banks in India to promote bilateral trade in local currencies.
The RBI has also entered into local currency settlement system arrangements with select trade partner countries like the UAE, Indonesia and Maldives for encouraging settlement of cross-border trade in rupee and the local bank of the partner country, MoS For Commerce & Industry Jitin Prasada said in Rajya Sabha.
“As on date, RBI has permitted 123 Correspondent banks from 30 trading partner countries for opening of total 156 SRVAs with 26 authorised deal banks in India,” he said.
The government, has taken several steps towards increasing the availability and acceptability of the domestic currency and use of other local currencies for cross-border transactions.
This would enable exporters and importers to invoice and pay in their respective domestic currencies enabling the development of a bilateral forex market.