Multiple Banks Open Special Vostro Accounts For Trade In Rupee

"As of now, there are 20 banks which have opened a special rupee vostro account," Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said.

Several banks, including HDFC Bank and UCO Bank, have opened special vostro accounts to facilitate overseas trade in the rupee and many countries have expressed interest to have this arrangement for the local currency trade, a top government official said on Wednesday.

Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said that the commerce ministry is in regular touch with banks, the Department of Financial Services and exporters on the issue.

"As of now there are 20 banks which have opened a special rupee vostro account," he told reporters here. All major banks have shared a list of nodal officers to sort out exporters' issues pertaining to these accounts, he added.

"This is a new initiative, there are teething troubles relating to the exchange rate mechanism, the repatriation of money. So, it has not fully taken off...But we are constantly in touch with the banks, the RBI and our exporters to ensure that it picks up," Sarangi said.