Mumbai (Maharashtra) [India], April 27 : ICICI Bank on Thursday 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.
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, according to a statement from ICICI Bank.
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 Indian rupees. ICICI Bank has a wide array of over 100 Rupee Vostro Accounts of correspondent banks across 29 countries including the US, Canada, UAE, Saudi Arabia, the 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 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 or 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," Sumit Sanghai said.
He added, "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."
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