Importers and Exporters can now settle Transactions through ICICI Banks New Rupee Vostro Accounts. This initiative is in line with the Foreign Trade Policy 2023 and RBI’s framework, where USD, Euro, and other currencies can also be used for payments, invoicing, or settlement of transactions.
On Friday, ICICI Bank announced that Indian exporters and importers could now settle transactions in Indian rupees through their offering, the Rupee Vostro account.
This works out well for Indian exporters and importers as the foreign currency risk faced by them is reduced. They can now use INR not only for payments but also for invoicing and settlement of transactions.
The initiative is in sync with Foreign Trade Policy 2023 and also RBI’s framework where apart from INR even USD, Euro, and other currencies can be used for payment, invoicing, or settlement of transactions.
An Authorized Dealer bank in India can open a Rupee Vostro account of a correspondent bank of a partner trading country for facilitating INR transactions.
There are over 100 arrays of Rupee Vostro accounts offered by ICICI Bank of correspondent banks across 29 countries, a few of which are the USA, Germany, Malaysia, and Canada.
#ICICIBank offers Rupee Vostro Account to enable Indian exporters and importers to pay and settle export-import transactions in Indian Rupees (INR).
The proposition reduces the foreign currency risk as they can use INR for invoicing, payment and settlement of transactions. pic.twitter.com/Bt55LCmAyc— ICICI Bank (@ICICIBank) April 27, 2023
Large Client’s Group Head of ICICI Bank, Sumit Sanghai said, “In line with the Government of India and Reserve Bank of India’s move to boost foreign trade in rupees, ICICI Bank is offering Rupee Vostro Account to Indian exporters and importers to settle their international trade transactions in INR.
ICICI Bank has a strong footprint of over 100 Rupee Vostro Accounts of banks located across 29 countries.
As these countries cover most of India’s export/import corridors, Indian exporters and importers can easily settle their trade transactions in INR, and help to promote the growth of Indian global trade and increase international trade in Indian Rupees.
Export-import is one of the biggest contributors to India’s economic growth. We believe our initiative will reduce the foreign currency exchange risk borne by our exporters and importers and will expedite international trade settlements.”
Importers and Exporters can now settle transactions through ICICI Banks’ New Rupee Vostro Accounts. However, the bank also offers an array of digital solutions for every stage of the transaction lifecycle of import and export.
Industry-first facilities such as Trade Online which is the bank’s flagship digital platform for import and export transactions are also available to users.
Trading APIs, which help make cross-border transactions smoother and very convenient. e-LC for letters of credit and other required purposes.
In addition to this, the Bank’s Trade Emerge platform offers a comprehensive digital suite of various services which are related to banking as well as non-banking stuff. Lastly, the bank also offers trade accounts like EEFC and OGTA for import and export-related transactions.
Source: ICICI Bank Tweet
