ICICI Bank announced that it offers 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, said a press release.
The Account reduces the foreign currency exchange risk for Indian exporters and importers, said the private lender.
The Bank holds more than 100 Rupee Vostro Accounts of correspondent banks located in 29 countries.
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.
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.
Speaking about the initiative, 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 rupees, ICICI Bank is offering Rupee Vostro Account to Indian exporters and importers to settle their international trade transactions in INR.”
ICICI Bank has a strong footprint of over 100 Rupee Vostro Accounts of banks located across 29 countries.
“As these countries cover most of India’s export/import corridors, Indian exporters and importers can easily settle their trade transactions in INR, and help to promote the growth of Indian global trade and increase international trade in Indian Rupees. 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,” he said.
ICICI Bank has a wide array of over 100 Rupee Vostro Accounts of correspondent banks across 29 countries including USA, Canada, UAE, Saudi Arabia, UK, Germany, and Malaysia.