The Reserve Bank of India (RBI) has in a notification said that those operating SRVA (special rupee vostro accounts) can now invest their surplus balances in G-secs (central government securities).

The SRVA, which is usually opened by foreign entities with an Indian bank, is useful in settling international trade transactions in rupee.

The RBI announcement, which was sent out to all authorised dealer category-I banks, has been made just days after it simplified the process to open the SRVAs, making it relevant to non-residents maintaining the SRVA.

Operational instructions in this connection have been incorporated in the ‘Master Direction’ on the subject.

The RBI Governor, Sanjay Malhotra, had also recently stated that India was working on popularising trade in its own currency like any other country. – editor@nrifocus.com