Vostro Accounts

On 16th November, 2022, India approved nine banks to open “Vostro” accounts to help facilitate trade in rupees with Russia.

• The move to open the special vostro account clears the way for the settlement of payments in rupee for trade between India and Russia, thus enabling cross-border trade in the Indian currency.
• Rationale: The move has come in the wake of increasing pressure on the Indian currency in the wake of Russia’s invasion of Ukraine and sanctions by the US and the EU.

About Vostro Accounts

• A Vostro account is defined as an account that a correspondent bank holds on behalf of ....