So far, the surplus balance of the rupid on the SRVA account can only be invested in the effects of the central government (including treasury accounts) | Photocredit: Dmitriy Razinkov
Saldi in Special Rupee Vostro Account (SRVA), maintained by persons who live outside India, for the international trade arrangement in Indian rupees, can now be non-convertible bonds/bonds and commercial papers issued by an Indian company, according to the RBI.
This step is possible aimed at attracting new investors to the market for corporate bonds and further deepening.
Until now, the excess balance of the rupee on the SRVA account could only be invested in the effects of the central government (including treasury accounts).
V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, said that the relocation aims to gradually internationalize the rupid by improving the usefulness of SRVA -Saldi, while at the same time supports the Indian business debt market and excessive dependence is reduced.
According to an RBI Circular of July 2022, the balance in special Vostro accounts can be used for payments for projects and investments, export/import pre -stream management and investments in treasury accounts, government effects, in terms of existing guidelines and prescribed limits, with a similar to FEMA and comparable FEMA.
Investments of SRVA-Saldi in non-convertible bonds/ bonds and commercial articles issued by an Indian company will be subject to the investment limit and provisions that are specified for FPI investments under the general route.
Adulthood
However, there will be no minimal remaining adult requirement and problem-based limits of investments made under the SRVA route.
The primary responsibility to meet all applicable limits for such investments lies with the SRVA holders and the advertisement (banks that are authorized to deal with foreigns) -I -Banken where these accounts are maintained.
AD category-I banks will facilitate the opening of individual DEMAT accounts for SRVA holders to keep their investments in non-convertible bonds/bonds and commercial papers issued by an Indian company.
The aforementioned banks will report the transactions of SRVA holders into non-convertible bonds/bonds and commercial papers issued by an Indian company on Depository (IES) registered with SEBI, for paying them under the investment limits for business debts under the general route.
Published on October 3, 2025
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