Question
The RBI has allowed international trade settlement in
rupees for which AD banks need to open ____________, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016.Solution
In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, RBI put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India. In terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, AD banks in India have been permitted to open Special Rupee Vostro Accounts. Accordingly, for settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. The settlement through Indian Rupees (INR) is an additional arrangement to the existing system that uses freely convertible currencies and will work as a complimentary system. This will reduce dependence on hard (freely convertible) currency. Banks will need to take prior approval from RBI before opening a Special Rupee vostro account, unlike Rupee Vostro account.
Government has restructured the Centrally Sponsored Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) as Revamped RGSA on 13.04.2022 for implementation fr...
The unsecured, perpetual and non-convertible bonds issued by banks in order to secure an external capital base to be used in times of a financial emerge...
The Sustainable Development Solutions Network (SDSN), released its annual Sustainable Development Report 2021, which ranked all the UN member states bas...
When does the Securities and Exchange Board of India (Sebi) plan to implement a T+0 (same day) settlement cycle for the cash segment on an optional basi...
Which one of the following is not one of the pillars of PMJDY?
 ____________Bank has won the Confederation of Indian Industry's (CII) Digital Transformation Awards, for best practices in digital transformation in t...
In the banking market in 2020, which two banks have contributed maximum in the industry profits?
What is the full form of TREDS?
The finance ministry, after consultations with the RBI, multilateral institutions, and other stakeholders, is ready with the framework for its maiden Rs...
Which of the following insurance company was the first Insurance Company to adopt UPI Auto debit facility?