RBI CIRCULAR

International Trade Settlement in Indian Rupees (INR)

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October 03, 2025

1. Attention of Authorised Dealer Category – I banks (AD banks) is invited to Para 8(c) of A.P. (DIR Series) Circular No.10 dated July 11, 2022 wherein it has been indicated that the balance in Special Rupee Vostro Accounts can be used for: ‘Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision’.

2. In the light of the directions issued through AP DIR Circular No.13 dated October 03, 2025, AD banks may permit investment of surplus balances in the Special Rupee Vostro Accounts also in nonconvertible debentures/bonds and commercial papers issued by an Indian company in terms of guidelines and limits prescribed vide the referred circular dated October 03, 2025.

3. The above instruction is applicable with immediate effect. AD banks may bring the contents of this circular to the notice of their constituents and customers concerned.

4. 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.

Investment in Corporate Debt Securities by Persons Resident Outside India through Special Rupee Vostro account

October 03, 2025