RAJKOT: Traders will soon be able to settle foreign trade in the rupee currency as several banks from different countries are opening special Vostro accounts with Indian banks, Commerce and Industry Minister Piyush Goyal has said.
The Reserve Bank of India (RBI) has approved 60 requests to open Special Rupee Vostro Accounts (SRVAs) of correspondent banks from 18 countries, including the UK, Singapore, and New Zealand.
The RBI, Goyal said, is in discussion with the central banks of other countries on the matter. “We will soon start seeing operationalisation of this rupee trading in international trade with several countries,” Goyal told reporters according to media reports on April 23.
He also said that negotiations for free trade agreements (FTAs) with developed regions like the European Union, the UK, and Canada are in “advanced” stages.
Groups including European Free Trade Association Free Trade Agreement (EFTA), Gulf Cooperation Council (GCC) and Eurasian Economic Union (EAEU) are also keen on starting talks for similar pacts with India. “The whole world wants to have a comprehensive economic partnership agreement with India,” the minister said.
