Consider the following statements about Vostro Account:

RBI has allowed the opening of Vostro accounts to facilitate overseas trade in rupee.

Vostro accounts can be open with two Indian lenders State Bank of India and HDFC.

Which of the statements given above is/are correct?

Question

The Reserve Bank of India (RBI) has allowed the opening of nine special Vostro accounts (under Foreign Exchange Management (Deposit) Regulation, 2016) with two Indian lenders — UCO and IndusInd Bank — to facilitate overseas trade in rupee.
A Vostro account is an account a correspondent bank holds on behalf of another bank.
In July, the RBI unveiled a mechanism to settle international transactions in rupee to promote the growth of global trade, with emphasis on exports from India, as well as pushing the rupee as an international currency. It is also expected to enable trade with a sanction-hit nation such as Russia.

GKToday Admin · Accepted Answer

Only 1

The Reserve Bank of India (RBI) has allowed the opening of nine special Vostro accounts (under Foreign Exchange Management (Deposit) Regulation, 2016) with two Indian lenders — UCO and IndusInd Bank — to facilitate overseas trade in rupee.
A Vostro account is an account a correspondent bank holds on behalf of another bank.
In July, the RBI unveiled a mechanism to settle international transactions in rupee to promote the growth of global trade, with emphasis on exports from India, as well as pushing the rupee as an international currency. It is also expected to enable trade with a sanction-hit nation such as Russia.

Current Affairs