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Cross-Border Trade in Rupees: The Finance Ministry has called a meeting with other countries to discuss ways to promote trade in rupees instead of dollars. Chief Executive Officers (CEOs) of banks have been called for this meeting. It also includes CEOs of six major private sector banks. According to sources, this meeting will be held on December 5 and senior officers of the Ministry of External Affairs and Ministry of Commerce will also participate in it. The progress made so far in this matter will also be reviewed in the meeting.
Finance Service Secretary Vivek Joshi will preside over the meeting.
Sources said that Finance Services Secretary Vivek Joshi will chair the meeting. Representatives of the Reserve Bank of India and the Indian Banks’ Association (IBA) are also likely to attend the meeting. In July, the RBI issued detailed guidelines for cross-border trade deals in rupees.
Nine special Vostro accounts opened in two domestic banks
Nine special Vostro accounts have been opened so far in two domestic banks to make foreign trade in rupees easy and convenient. Vostro accounts are those opened by domestic banks for foreign banks in local currency. In the case of India it is Rupee. The move to open a special Vostro account has paved the way for rupee payments for trade between India and Russia. This has made cross border trade possible in the Indian currency Rupee.
These banks of Russia got permission to open vostro account
Following the RBI guidelines, Russia’s largest Sberbank and second largest VTB Bank are the first foreign banks to be allowed to open vostro accounts. Another Russian bank Gazprom has also opened this account with Kolkata based UCO Bank.
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What is in the guidelines of RBI
As per the guidelines of the Reserve Bank of India, it has made additional arrangements for import and export invoices, payments and settlements in rupees instead of dollars.
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