After Russia, banks from Sri Lanka and Mauritius have also opened special rupee trading accounts in local branches in New Delhi. So far 18 foreign banks have opened special rupee Vostro accounts with 11 local bank branches in India, sources in the Indian commerce ministry said.

Officials at the commerce ministry told this newspaper State Bank of India has also opened rupee trading accounts of Sri Lankan and Mauritius banks. The country’s largest bank in the past expressed its reluctance to open rupee trading accounts for Russian entities citing the risk of sanctions from the US and other European countries, the New Indian Express reported.

Among other Indian banks, IndusInd Bank has opened 6 Vostro accounts of Russian banks.  Uco Bank, HDFC Bank, Canara Bank and Union Bank of India have one Vostro account for each of the Russian banks. Indian Bank has opened three Vostro accounts of Sri Lankan banks, while two local branches of Russian banks – Sberbank and VTB – have also opened rupee trading accounts.

A Vostro account is a corresponding account a local bank maintains for a foreign bank. Meanwhile, commerce ministry officials have told this newspaper that in a recent joint meeting of banks and the Export Promotion Councils, it has been decided that the Federation of Indian Export Organizations (FIEO) and Indian Banking Association (IBA) will organize a sensitization meeting for bankers as well as exporters so that there is greater awareness about special Vostro accounts and how they operate.

“There is a lack of clarity as far as how the special rupee Vostro account will operate. In this context, RBI has already uploaded an FAQ and it has decided as and when there is a need for any clarity, the RBI will keep updating the FAQ so that at the banker or at exporter level there is no doubt about the operational aspect of the special rupee Vostro account,” said an official. The officials, however, could not share the number or value of transactions through these accounts.

Officials at the commerce ministry said SBI has opened rupee trading accounts of Sri Lankan and Mauritius banks. The bank in the past expressed its reluctance to open rupee trading accounts for Russian entities citing the risk of sanctions from the US and other European countrie.