Question
The RBI recently allowed non-residents holding Special
Rupee Vostro Accounts (SRVAs) to invest surplus rupee balances in which instrument?ÂSolution
The RBI permitted non-residents with SRVAs to invest surplus rupee balances in government securities. SRVAs, introduced in 2022, allow trade settlement in INR, helping promote rupee internationalisation. This reduces dependence on USD, lowers hedging costs, and promotes global acceptance of INR.Â
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