The Reserve Bank of India (RBI) has signed memoranda of understanding with central banks in the United Arab Emirates, Indonesia and Maldives to encourage such efforts, it said in a press release.
This move comes after the Indian rupee hit a record low of 86.70 per US dollar.
The special rupee vostro account (SRVA) has gained traction since its introduction in July 2022, with multiple foreign banks establishing SRVAs in India.
The revamped regulations also enable non-resident Indians to engage in legitimate transactions using Indian rupee accounts and facilitate foreign direct investment in non-debt instruments.
ALCHEMPro News Desk (DS)
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