HDFC Bank, Canara Bank get RBI approval for rupee trade with Russia

Daily Current Affairs / HDFC Bank, Canara Bank get RBI approval for rupee trade with Russia

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Category : International Published on: November 24 2022

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The Reserve Bank of India (RBI) allowed HDFC Bank Ltd and Canara Bank Ltd to open a special "vostro account" for trade in Rupees with Russia.
Vostro accounts are accounts a bank holds on behalf of another, often foreign bank, and this forms a key part of correspondent banking.
As many as five Indian banks have received regulatory clearance for rupee trade till now. These includes UCO Bank, Union Bank and IndusInd Bank are the other three.
This apart, two Russian banks have the central bank's approval – Sber Bank and VTB. Both have branch presence in India.
These Russian banks are the first foreign lenders to receive this approval after the RBI announced the guidelines on overseas trade in rupee in July.