Special Rupee Vostro Account (SRVA):
The Indian government has simplified the payment mechanism for traders importing pulses from Myanmar by implementing the Rupee/Kyat direct payment system through the Special Rupee Vostro Account (SRVA) via Punjab National Bank.
- SRVA is an account that domestic banks hold for foreign banks in the former’s domestic currency, the rupee, which allows domestic banks to provide international banking services to their clients who have global banking needs without having to be physically present abroad.
- The SRVA is an additional arrangement to the existing system that uses freely convertible currencies and works as a complimentary system.
- It has three important components:
- All exports and imports must be denominated and invoiced in domestic currency(e.g. Rupee)
- The exchange ratebetween the currencies of the trading partner countries would be market-determined
- The final settlement also takes place in domestic currency (e.g. Rupee)
