Sberbank and VTB Bank – Russia’s largest and second largest banks respectively – are the first foreign lenders to receive the approval after the RBI announced guidelines on foreign trade in rupees in July.
another russian bank Gazprom – who does not have a bank in India – has also opened this account in a Kolkata based bank UCO Bank,
“Nine accounts have been opened. One in UCO Bank, one in SBER, one in VTB and 6 accounts in IndusInd Bank, these are six different Russian BankCommerce Secretary Sunil Barthwal told reporters in New Delhi.
special opening trick your account clears the deck for disposal trade in rupees To enable cross-border trade in Indian currency, between India and Russia, which the RBI seeks to promote.
The Reserve Bank of India has allowed special Vostro accounts to invest surplus balances in Government of India securities to help popularize the new system.
UCO Bank already has a Vostro account-based facility in Iran. Gazprombank, or GPB, is a privately owned Russian lender and the country’s third largest bank by assets.
Last month, the RBI and the finance ministry had asked the top management of banks and representatives of trade bodies to promote export and import transactions in rupees. They want banks in India to join their foreign counterparts in opening special rupee vostro accounts to facilitate cross-border trade in Indian currency instead of the popular mode of US dollars.
but when rupee trade Starting with Russia, the secretary said there is a process involved and it is expected to materialize soon.
Barthwal said he held a meeting with officials of UCO Bank, RBI and Department of Financial Services and discussed ways to promote rupee trading.
“We want to promote rupee trade as it is in the interest of the country,” he said.