Daily News Analysis » April 2024 » Special Rupee Vostro Account (SRVA): 16 April 2024

Special Rupee Vostro Account (SRVA): 16 April 2024

About SRVA:

    • SRVA is an account maintained by domestic banks in rupees for foreign banks.
    • It enables  the domestic banks  to offer global banking services to clients without the need for a physical presence overseas.
    • This arrangement allows domestic banks to cater to clients with international banking requirements by facilitating transactions in their local currency, the rupee.


  •  Invoicing: All imports and exports must be valued and invoiced in Indian National Rupee (INR), according to the rules of invoicing. 
  • Exchange Rate: The Exchange Rate between the currencies of the trading partner countries would be market-determined.    
  • Settlement: The Final Settlement also takes place in INR.

Objective of SVRA:

  • Reduced dependence on foreign currencies would make the country less vulnerable to external shocks.
  • In the long-term it will promote Rupee as an international currency.

Nostro Accounts:

  •  It is a bank account that a commercial bank creates in some other foreign country with the currency of a foreign country only. 

Loro Account:

  • It is a current account that is maintained by one domestic bank for another domestic bank in the form of a third party account, unlike nostro and vostro which is bilateral correspondence.

Why in news?

  • India has implemented the Rupee/Kyat direct payment system through the Special Rupee Vostro Account (SRVA) via Punjab National Bank, simplifying the payment process for traders importing pulses from Myanmar.