SRVA was launched in July 2022 to encourage the use of rupees in trade. SRVA stands for Special Rupee Vostro Account. It is a program that allows countries to settle international trade in the Indian Rupee (INR).
- How it works
- Vostro account:
- A domestic bank holds an account for a foreign bank in the domestic bank’s currency.
- Invoicing:
- All exports and imports are denominated and invoiced in INR.
- Exchange rate:
- The exchange rate between the trading partner countries’ currencies is determined by the market.
- Settlement:
- The final settlement is also in INR.
- Vostro account:
- Benefits
- Reduces dependence on foreign currencies
- Implements the use of the rupee as an international currency
- Examples
- Russian banks opened SRVAs with partner banks in India to settle transactions for trade between them.
- SRVAs have also been used by traders in importing pulses from Myanmar.
