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RBI CIRCULAR
RBI
CIRCULAR
International Trade Settlement in Indian Ru- Investment in Corporate Debt Securities by
pees (INR) Persons Resident Outside India through Special
October 03, 2025 Rupee Vostro account
October 03, 2025
1. Attention of Authorised Dealer Category I banks
(AD banks) is invited to Para 8(c) of A.P. (DIR Series) 1. Attention of Authorised Dealer Category-I (AD Cat-
Circular No.10 dated July 11, 2022 wherein it has egory-I) banks is invited to Schedule 1 to the Foreign
been indicated that the balance in Special Rupee Exchange Management (Debt Instruments) Regula-
Vostro Accounts can be used for: Investment in Gov- tions, 2019 notified, vide Notification No. FEMA. 396/
ernment Treasury Bills, Government securities, etc. in 2019-RB dated October 17, 2019, and the Foreign Ex-
terms of extant guidelines and prescribed limits, sub- change Management (Deposit) Regulations, 2016 no-
ject to FEMA and similar statutory provision. tified, vide Notification No. FEMA. 5(R)/2016-RB dated
2. In the light of the directions issued through AP DIR Cir- April 01, 2016 as amended from time to time and the
cular No.13 dated October 03, 2025, AD banks may relevant Directions issued thereunder. A reference is
permit investment of surplus balances in the Special also invited to the Master Direction - Reserve Bank of
Rupee Vostro Accounts also in non-convertible deben- India (Non-resident Investment in Debt Instruments)
tures/bonds and commercial papers issued by an Indian Directions, 2025 dated January 07, 2025 (hereinafter
company in terms of guidelines and limits prescribed Master Direction).
vide the referred circular dated October 03, 2025. 2. Persons resident outside India that maintain a Special
3. The above instruction is applicable with immediate ef- Rupee Vostro Account (SRVA) for international trade
fect. AD banks may bring the contents of this circular settlement in Indian Rupees in terms of A.P. (DIR Se-
to the notice of their constituents and customers con- ries) Circular No. 10 dated July 11, 2022 were permit-
cerned. ted to invest their rupee surplus balance in the afore-
said account in Central Government Securities (includ-
4. The directions contained in this circular have been is-
ing Treasury Bills), vide A.P.(DIR Series) Circular no. 9
sued under sections 10(4) and 11(1) of the Foreign Ex-
dated August 12, 2025. It has now been decided to
change Management Act (FEMA), 1999 (42 of 1999)
also permit investment of these balances in non-con-
and are without prejudice to permissions / approvals,
if any, required under any other law. vertible debentures/bonds and commercial papers is-
sued by an Indian company.
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