Nine Russian banks open Vostro accounts for rupee trade

TL;DR

Russia is the only country to engage with India’s rupee-based trade gambit for now, and nine Russian banks have been permitted to open special Vostro accounts to pave the way for such export-import transactions, the country’s top trade official said on Tuesday.“For Rupee trade to happen, you require a balance of trade because it is not an international currency,” said Commerce Secretary Sunil Barthwal.“We want to promote rupee trade because it is in the nation’s interest and unnecessarily, we won’t have to look for dollars,” he observed, adding that the Commerce Ministry was working with the Department of Financial Services, the central bank and traders to expedite its adoption.Among the nine Russian banks, Gazprombank had opened an account with Kolkata-based UCO Bank, while six others had opened an account with private lender IndusInd Bank.The central bank, Mr. Barthwal said, has to issue some guidelines to move the process forward."

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