ICICI Bank on Thursday announced that it is offering Rupee Vostro Account to enable Indian exporters and importers to pay and settle export-import transactions in Indian Rupees (INR).
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. This initiative is in line with India’s Foreign Trade Policy 2023 and RBI’s framework for invoicing, payment, and settlement of exports/imports in INR, in addition to US Dollar, Euro and other currencies, ICICI Bank said in a statement.
It added that the Authorised Dealer (AD) banks in India can open Rupee Vostro Accounts of correspondent bank/s of a partner trading country to facilitate trade transactions in INR.
ICICI Bank has over 100 Rupee Vostro Accounts of correspondent banks across 29 countries including USA, Canada, UAE, Saudi Arabia, UK, Germany, and Malaysia.
Sumit Sanghai, head – large clients group, ICICI Bank, said, “In line with the Government of India and Reserve Bank of India’s move to boost foreign trade in Rupee, ICICI Bank is offering Rupee Vostro Account to Indian exporters and importers to settle their international trade transactions in INR. Export-import is one of the biggest contributors to India’s economic growth. We believe our initiative will reduce the foreign currency exchange risk borne by our exporters and importers and will expedite international trade settlements.”
In addition to the Rupee Vostro Account facility, the Bank said it is offering an array of digital solutions for every stage in export-import transaction lifecycle.
How to avail ICICI Bank’s Rupee Vostro Account:
Steps for the exporter and importer to avail Rupee Vostro Account:
-Draw up invoices in INR: Approach the trade counter parties to accept INR invoicing.
-Check for availability of Rupee Vostro Account of counterparty’s bank: Check for bank names of the counter party. Confirm with ICICI Bank’s account manager/corporate ecosystem branch/trade desk for availability of Vostro account in ICICI Bank for bank of counter party.
-Settlement of trade: If there is an existing Vostro account at ICICI Bank, settle the trade in INR and receive/send the payments from/to the overseas counterparty.
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