RBI seeks lifting cap on Vostro IDs for rupee-based trade: Report
Shristi Acharya, Published on May 4th, 2025
In a bid to increase rupee-denominated trade and investment, RBI has asked the Centre to remove cap on foreign banks using Vostro accounts to buy short-term sovereign debt, Reuters reported. The Centre's rules for Vostro accounts dictate that only 30% of the account balances can be used to buy securities with residual maturity under one year, including treasury bills.
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