The update consolidates regulatory instructions governing cross-border trade settlement mechanisms and foreign exchange account operations under FEMA, which constitutes regulatory reporting and supervisory guidance on authorized dealer bank operations.
The circular establishes supervisory oversight of authorized dealer banks' cross-border transaction settlement practices and documentation requirements, reflecting ongoing regulatory supervision of foreign exchange operations.
Product
International Transfers is the closest match as SRVAs facilitate cross-border settlement of trade transactions and permissible current/capital account flows in foreign currency, though this is a wholesale/correspondent banking framework rather than retail customer cross-border payments.
Multi Currency Accounts is secondarily relevant as SRVAs involve holding and transacting in rupees within accounts for overseas entities, though the product is institutional/wholesale rather than retail-focused.
Obligation
The circular consolidates regulatory instructions for Special Rupee Vostro Accounts and requires AD banks to communicate the framework to constituents and customers, which involves customer-facing communication of regulatory requirements, though the primary focus is on regulatory consolidation and operational framework clarification rather than a specific mandated disclosure of material facts to customers.
The circular imposes documentation and reporting requirements under extant FEMA guidelines and introduces a new periodic update requirement for overseas correspondent banks to the SRVA directory, which involves submission of prescribed information to a mandated recipient (FEDAI directory), though the reporting obligation is not the primary driver of the update.
Activity
The update concerns cross-border trade settlement mechanisms and foreign exchange account management for authorised dealer banks, which relates to foreign exchange services activity, though the focus is institutional rather than retail-facing.
The circular also addresses account administration and reporting requirements for Special Rupee Vostro Accounts held by overseas banks, which touches on account servicing elements, though again in an institutional rather than retail context; flagged for human review given the non-retail scope and lower confidence.
Themes
The update concerns cross-border payment settlement infrastructure and foreign exchange account management for trade transactions, which relates tangentially to Payment Services Regulation but lacks direct retail customer conduct or payment-service licensing elements.
The consolidation of foreign exchange account regulations and documentation requirements reflects elements of Disclosure and Transparency, though the update is primarily institutional and lacks a clear retail customer or conduct-of-business dimension.
Functions
The update directly impacts treasury and finance functions managing cross-border rupee settlement accounts, funding mechanisms, and foreign-exchange transaction flows for authorised dealer banks.
Operations teams must implement the new SRVA directory reporting requirements and ensure compliance with updated documentation and settlement procedures, though this is a supporting rather than primary obligation requiring human review.
2026-07-20 12:52:36·pthandapani@vixio.com
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Notifications - Reserve Bank of India
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TITLE: India's Reserve Bank Consolidates Special Rupee Vostro Accounts Regulations for Cross-Border Trade
BODY:
On July 17, 2026, the Reserve Bank of India (RBI) issued a consolidated circular on Special Rupee Vostro Accounts (SRVAs), superseding five previous directives issued between July 2022 and October 2025. The circular, RBI/2026-27/203 A.P. (DIR Series) Circular No. 19, rationalises instructions governing the use of SRVAs by authorised dealer banks in India for cross-border trade settlement in Indian rupees (INR).
SRVAs enable authorised dealer Category-I banks to open rupee accounts for overseas branches or non-resident banks, facilitating the settlement of cross-border trade transactions and permissible capital and current account transactions under the Foreign Exchange Management Act (FEMA). The consolidated framework permits AD banks to fund SRVAs through inward remittances or transfers from other repatriable INR accounts. Proceeds from permissible current and capital account transactions may also be held in these accounts. Additionally, AD banks may open supplementary current accounts exclusively for exporters and importers to settle export and import transactions.
The circular clarifies that investments in debt instruments from SRVA balances are governed by the Master Direction on Non-resident Investment in Debt Instruments, 2025. Documentation and reporting requirements follow extant FEMA guidelines. The RBI introduced a new requirement for overseas correspondent banks to update their SRVA holdings periodically in the SRVA directory published by the Foreign Exchange Dealers' Association of India (FEDAI).
The instructions take effect immediately. Authorised dealer banks must communicate the circular's contents to their constituents and customers. The directions are issued under sections 10(4) and 11(1) of FEMA 1999 and are without prejudice to permissions or approvals required under any other applicable law.
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Notifications ( 355 kb ) Special Rupee Vostro Accounts (SRVAs) RBI/2026-27/203 A.P. (DIR Series) Circular No.19 July 17, 2026 To, All Authorised Dealer Category-I banks Madam/Sir Special Rupee Vostro Accounts (SRVAs) Attention of authorised dealer banks is invited to the following circulars on International Trade Settlement in Indian Rupees (INR): A.P. (DIR Series) Circular No. 10 dated July 11, 2022 , Circular No. 08 dated November 17, 2023 , Circular No. 11 dated June 11, 2024 , A.P. (DIR Series) Circular No. 08 dated August 05, 2025 , and A.P. (DIR Series) Circular No. 14 dated October 03, 2025 . 2. On a review, it has been decided to consolidate and rationalise the instructions contained in above referred circulars. Accordingly, this circular is being issued in supersession of the above referred circulars. The changes flowing from the above circulars are indicated in Annex . 3. AD banks in India may open Special Rupee Vostro Accounts (SRVAs) of its branch outside India or a bank resident outside India, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016 . 4. The settlement of cross-border trade transactions through SRVA is an additional arrangement for invoicing, payment and settlement of exports and imports in INR. Additionally, all permissible capital and current account transactions under FEMA may be settled through the SRVA. Further, AD banks maintaining SRVA are also permitted to open additional current account for exporter/importer, exclusively for settlement of export/import transactions. 5. SRVA may be funded by way of inward remittances or transfer from other repatriable INR accounts in terms of Foreign Exchange Management (Deposit) Regulations, 2016 . The proceeds accrued through permissible current and capital account transactions under FEMA can also be held in the SRVA. 6. Investments in debt instruments out of the balances held in the SRVA shall be governed by the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 , as amended from time to time. 7. Documentation and reporting of cross-border transactions through SRVA shall be done in terms of the extant guidelines under FEMA 1999, issued from time to time. The details of SRVA held by overseas correspondent banks with AD banks in India may be updated periodically in the ‘SRVA directory’, published by FEDAI. 8. The above instructions shall come into force with immediate effect and AD banks may bring the contents of this Circular to the notice of their constituents and customers concerned. 9. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (N. Senthil Kumar) Chief General Manager Annex - List of changes/consolidation undertaken in the present circular dated July 17, 2026 Sl. No. A.P. (DIR Series) Circular No. 10 dated July 11, 2022 Corresponding para of this circular 1. Para 1 - Introduction Para 2 - Broad framework for cross border transactions; Para 3 - Procedure for opening of SRVA and settlement in INR Subsumed in Para 4. Subsumed in Para 4. Subsumed in Para 3 & 4. 2. Para 5 - Advance against exports Para 6 - Setting-off export receivables Para 7 - Bank Guarantee Not part of this circular. (AD bank may be guided by extant instructions as amended from time to time.) 3. Para 8 - Use of surplus balance Subsumed in Para 4 & 6. 4. Para 4 - Documentation Para 9 - Reporting Requirement Subsumed in Para 7. 5. Para 10 - Approval Process Superseded vide A.P. (DIR Series) Circular No. 08 dated August 5, 2025 . 6. No mention New addition: Publication in SRVA Directory on FEDAI Website. Sl. No. Circular No. 08 dated November 17, 2023 and Circular No. 11 dated June 11, 2024 Corresponding para of this circular 7. Opening of additional current account for exporter and importer Subsumed in Para 4. Sl. No. A.P. (DIR Series) Circular No. 08 dated August 05, 2025 Corresponding para of this circular 8. Opening of SRVA without referring to RBI for approval Subsumed in Para 3. Sl. No. A.P. (DIR Series) Circular No. 14 dated October 03, 2025 Corresponding para of this circular 9. 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