The RBI on Tuesday tweaked norms and allowed banks to open Special Rupee Vostro Accounts of correspondent banks without its prior approval.

In July 2022, the Reserve Bank of India had put in place an additional arrangement for invoicing, payment, and settlement of exports/ imports in Indian rupee.

Under the arrangement, banks were permitted to open SRVAs of correspondent banks, with the prior approval of the Reserve Bank for settling cross-border trade transactions.

“Based on a review of the procedure involved in opening of the SRVA, it has been decided to do away with the need for seeking RBI approval for opening of SRVA,” the RBI said in a statement.

Banks can now open SRVAs of correspondent banks without referring to the Reserve Bank of India.

The change in procedure will considerably quicken the process for opening of SRVAs, the RBI said.