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RBI gives nod to Canara Bank, HDFC Bank for rupee trade with Russia: Report

Vostro accounts are essential for correspondent banking and are usually held by a lender on behalf of their foreign counterpart.

November 21, 2022 / 09:06 PM IST

State-run Canara Bank and private lender HDFC Bank have received approval from the Reserve Bank of India (RBI) to open a special Vostro account, which will be used for trading in rupees with Russia, a business daily reported on November 21.

Vostro accounts are essential for correspondent banking and are usually held by a lender on behalf of their foreign counterpart.

RBI's nod to Canara Bank and HDFC Bank, as reported by Business Standard, comes nearly a week after Commerce Secretary Sunil Barthwal said that nine special Vostro accounts have been opened to facilitate overseas trade in the rupee.

"Nine accounts have been opened. One in Uco Bank, one in Sber, one in VTB and 6 with IndusInd Bank. These six are different Russian banks," news agency PTI had quoted Barthwal as saying on November 15.