The Reserve Bank has permitted 20 banks operating in the country to open 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries as part of efforts to promote bilateral trade in local currencies, the government said. In a written reply to Lok Sabha, Minister of State for Commerce and Industry Som Parkash also informed that an MoU has been signed between the Reserve Bank of India (RBI) and the Central Bank of UAE on July 15.
This would enable exporters and importers to invoice and pay in their respective domestic currencies, enabling the development of a bilateral foreign exchange market. As on July 23, 20 banks in India have been permitted to open SRVAs of partner banks from 22 countries, including Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana and Israel. Other countries are Kazakhstan, Kenya, Malaysia, Maldives, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.
Meanwhile, Minister of State for Commerce and Industry Anupriya Patel said India's exports rose by 36.6 percent during the last five years from USD 330.07 billion in 2018-19 to USD 450.95 billion in 2022-23. India's imports rose by 38.8 percent during the last five years from USD 514.07 billion in 2018-19 to USD 714.04 billion in 2022-23. She also informed me that most of the goods imported from China are capital goods, intermediate goods and raw materials and are used for meeting the demand of fast-expanding sectors like electronics, telecom and power in India.