FIEO Calls for RBI Transparency on Rupee Trade Benefits

The Federation of Indian Export Organisations (FIEO) urges the Reserve Bank of India to publicize information about banks offering the Special Rupee Vostro Accounts for trade settlement. FIEO President S C Ralhan highlights that lack of awareness restricts the wider use of this beneficial trade system.

The Federation of Indian Export Organisations (FIEO) has called on the Reserve Bank of India (RBI) to increase transparency by sharing public information about banks that offer the Special Rupee Vostro Accounts (SRVAs). FIEO President S C Ralhan emphasized that the lack of awareness about the system is hindering its full utilization.

Implemented by the RBI in 2023, the SRVA system allows trade settlements in domestic currencies rather than foreign currencies, promoting more sustainable bilateral trade. However, exporters face challenges in accessing it due to limited information on participating banks.

Ralhan also discussed export financing issues with RBI Governor Sanjay Malhotra, noting that high borrowing costs put Indian exporters at a global disadvantage. He advocated for the Interest Equalisation Scheme to support exporters and ease their financial burden.

(With inputs from agencies.)