ICICI Bank To Offer Rupee Vostro Accounts To Settle Int’l Trade In Indian Rupee
ICICI Bank is to offer Rupee Vostro Account (RVA) to enable Indian exporters and importers to pay and settle export-import transactions in Indian Rupees (INR), according to the official statement.
The proposition reduces the foreign currency risk borne by Indian exporters and importers as they can use INR for invoicing, payment and settlement of their transactions.
Bank said that the initiative lies with India’s Foreign Trade Policy 2023 and RBI’s framework for invoicing, payment and settlement of exports and imports in INR, in addition to US Dollar, Euro and other currencies.
According to the bank, the Authorised Dealer (AD) in India can open Rupee Vostro Accounts of the correspondent bank of a partner trading country to facilitate trade transactions in INR.
ICICI Bank claims that it has a wide array of over 100 Rupee Vostro Accounts of correspondent banks across 29 countries including the USA, Canada, UAE, Saudi Arabia, UK, Germany and Malaysia.
Sumit Sanghai, Head – Large Clients Group, ICICI Bank said, “This move will boost foreign trade in rupees and Bank is offering Rupee Vostro Account to Indian exporters and importers to settle their international trade transactions in INR. It will also help in promoting the growth of Indian global trade and increase international trade in Indian Rupees.”
As per the bank’s statement, the Bank offers the most comprehensive digital solutions for every stage in the export-import transaction including industry-first facilities such as Trade Online, the Bank’s flagship digital platform for export-import transactions; Trade APIs, which enable smooth handling of cross-border trade transactions directly from customers’ ERP systems, thereby providing greater convenience; e-LC for letters of credit and Export Packing Credit (Insta EPC) for instant disbursal of export finance.
