RBI is in action to make a plan on Vostro accounts. If any bank request from Vostro bank, they have to take and send it to RBI for consent
The Vostro account needs to speed up as on Wednesday. RBI and government propose an action plan for special rupee accounts(SRVA). These accounts will help you provide cross-border banking services in Indian currency and satisfy your global banking needs. This includes transfer and withdrawal according to the sources and information gave by the minister.
This process will detach the need for agreement through changeable currency. Lower transaction cost and abolished global exchange risk for both the parties, so now, to settle the transaction, the bank need to have Vostro accounts of the correspondent bank from the partner of the country: RBI
The government is also spreading awareness about the work with the help of Indian embassies and overseas, which entitles Indian merchants receiving trade through this process should make payment in Indian rupee (INR) it will be credited into a particular Vostro account of the correspondent bank of the partner country as opposed to the invoice of goods and services from a global seller
ICICI Bank received 115+ proposals from Vostro banks in Sri Lanka, Russia and Ukraine
ICICI bank received the most applications with Induslnd Bank, SBI and UCO bank officials told in a meeting
Till now, RBI didn’t receive any application for approval.