RBI Permits Investment of SRVA Surplus Balances in Corporate
Debt Instruments
The Reserve Bank of India
(RBI) has allowed Authorised Dealer
(AD) Category-I banks to permit investment of surplus balances held
in Special Rupee Vostro Accounts (SRVAs) not only in Government
securities and Treasury Bills but also in non-convertible debentures
(NCDs)/bonds and commercial papers (CPs) issued by Indian companies,
as per the guidelines in AP (DIR Series) Circular No.13 dated October 03,
2025.
The
instructions are effective immediately, and AD banks must inform
their constituents and customers accordingly.
The directions are issued under Sections
10(4) and 11(1) of the FEMA, 1999, and are subject to other applicable
laws.
[A.P. (DIR Series) Circular No. 14 dated October 03, 2025]
International Trade Settlement in Indian Rupees (INR)
Attention of Authorised Dealer Category I banks (AD banks) is invited to Para 8(c) of A.P. (DIR
Series) Circular No.10 dated July 11, 2022 wherein it has been indicated that the balance in Special Rupee Vostro Accounts can be used for: Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits,
subject to FEMA and
similar statutory provision.
2.
In the light of the directions issued through AP DIR Circular No.13 dated October 03,
2025, AD banks may permit investment of surplus balances in the Special Rupee Vostro Accounts also in non-convertible debentures/bonds and commercial papers issued by an
Indian company in terms of
guidelines and limits prescribed vide
the referred circular dated October
03, 2025.
3.
The above instruction is applicable with immediate effect. AD banks may bring the contents of this circular to the notice of their constituents
and customers concerned.
4.
The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without
prejudice to permissions / approvals,
if any, required
under any other law.