When an Indian importer make a payment to a foreign trader in rupees, the amount gets credited to this vostro account. These accounts keep the foreign entity’s holding in the Indian bank in INR. To settle trade as per the new mechanism, authorised banks in India need to open and maintain SRVAs of the partner trading country’s banks. “It has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,” the India’s central bank said.Īlso Read: Eight countries open 50 special rupee vostro accounts in 6 months to trade in INR
The process of SRVAs started last year in the month of July when the RBI issued detailed guidelines on cross-border trade transactions in the Indian rupees (INR). What is Special Rupee Vostro Account or SRVA? dollars using the applicable exchange rate without prior notice to you.įor additional information related to Wires and foreign currency wires, please see the Wells Fargo Wire Transfers Terms and Conditions.The numbers clearly indicate a significant progress in the development of mechanism to settle international trade in Indian rupees.
Incoming wire transfers received in a foreign currency for payment into your account will be converted into U.S. We may refuse to process any request for a foreign exchange transaction. Wells Fargo is your arms-length counterparty on foreign exchange transactions. Foreign exchange markets are dynamic and rates fluctuate over time based on market conditions, liquidity, and risks. Different customers may receive different rates for transactions that are the same or similar, and the applicable exchange rate may be different for foreign currency cash, drafts, checks, or wire transfers. The exchange rate Wells Fargo provides to you may be different from exchange rates you see elsewhere. The applicable exchange rate does not include, and is separate from, any applicable fees. The markup is designed to compensate us for several considerations including, without limitation, costs incurred, market risks, and our desired return. The exchange rate used when Wells Fargo converts one currency to another is set at our sole discretion, and it includes a markup. In addition to any applicable fees, Wells Fargo makes money when we convert one currency to another currency for you.
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