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    Question

    Under the RBI’s October 03, 2025 guidelines on

    International Trade Settlement in INR, surplus balances in Special Rupee Vostro Accounts may additionally be invested in which of the following instruments?
    A Only Government Treasury Bills Correct Answer Incorrect Answer
    B Only State Development Loans Correct Answer Incorrect Answer
    C Non-convertible debentures, bonds, and commercial papers of Indian companies Correct Answer Incorrect Answer
    D Only RBI-issued sovereign gold bonds Correct Answer Incorrect Answer
    E Foreign currency denominated corporate bonds Correct Answer Incorrect Answer

    Solution

    The 2025 circular extends the permitted use of surplus balances in Special Rupee Vostro Accounts. Earlier (as per the July 2022 circular), these balances could be invested only in T-Bills and government securities. The October 2025 update allows investment in non-convertible debentures, bonds, and commercial papers issued by Indian companies, subject to guidelines in AP DIR Circular No. 13 (also dated October 03, 2025). No foreign-currency instruments or SGB-only restrictions were introduced.

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