Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

India's HDFC Bank, Canara Bank get approval for rupee trade with Russia - report

Published 11/21/2022, 07:47 AM
Updated 11/21/2022, 08:00 AM
© Reuters. FILE PHOTO: A bird flies past a window of a HDFC Bank branch office in Mumbai, India, October 21, 2015. REUTERS/Shailesh Andrade

BENGALURU (Reuters) - India's central bank has allowed HDFC Bank Ltd and Canara Bank Ltd to open a special "vostro account" for trade in rupees with Russia, local newspaper Business Standard reported on Monday, citing banking industry sources.

Vostro accounts are held by a bank on behalf of another, often foreign bank, and this forms a key part of correspondent banking.

The Reserve Bank of India (RBI), HDFC Bank and Canara Bank did not immediately respond to Reuters requests for comment.

The RBI in July introduced a new mechanism for international trade settlements in rupees, aiming to promote exports and facilitate imports.

The measure was seen as aiding business ties with Russia in case of more stringent Western sanctions against Moscow over its invasion of Ukraine.

© Reuters. FILE PHOTO: A bird flies past a window of a HDFC Bank branch office in Mumbai, India, October 21, 2015. REUTERS/Shailesh Andrade

Indian trade secretary Sunil Barthwal earlier this month said the country has given nine banks approval to open "vostro" accounts to help facilitate trade in rupees with Russia.

Russian energy major Gazprom (MCX:GAZP) had opened an account with UCO Bank, while VTB Bank and SberBank have opened accounts with their own India-based branch offices.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.