SPECIAL RUPEE VOSTRO ACCOUNT (Syllabus GS Paper 3 – Economy)

Get an Instant Call Back from Our Expert Mentors Now!

+91

Context: India has simplified the payment mechanism for traders importing pulses from Myanmar, requiring them to use the Rupee/Kyat direct payment system through the Special Rupee Vostro Account (SRVA).

Vostro Account: It is an account that domestic banks hold for foreign banks in the former’s domestic currency, such as the rupee.

International Banking Services: Domestic banks utilize Vostro Accounts to offer international banking services to clients with global banking needs.

Nostro accounts: A nostro account is a bank account held in another country by a domestic bank, denominated in the currency of the overseas country.

Special Rupee Vostro Account (SRVA)

About: SRVA is an additional arrangement for settling international trade using Indian Rupees (INR), complementing existing systems of freely convertible currencies.
Freely Convertible Currency: U.S. Dollar or Pound Sterling, are permitted for conversion by the country's regulations.
Aim: To reduce reliance on hard (freely convertible) currencies for international trade settlements.
RBI Approval Requirement: Unlike Rupee Vostro accounts, SRVA requires prior approval from the Reserve Bank of India (RBI) before opening.
Functionality of SRVA: The SRVA framework operates through three key components: invoicing, exchange rate determination, and settlement.

Mechanism of SRVA

Invoicing in INR: All exports and imports must be denominated and invoiced in Indian Rupees (INR).
Market-Determined Exchange Rate: Exchange rates between partner countries' currencies are determined by the market.
Role of Domestic Banks: Authorized domestic dealer banks open SRVA accounts for correspondent banks of partner countries.
Payment Procedures: Domestic importers pay in INR into the correspondent bank's SRVA for goods or services.

oDomestic exporters receive export proceeds in INR from the correspondent bank's designated account.

Regulatory Compliance: All cross-border transactions are reported as per Foreign Exchange Management Act (FEMA), 1999 guidelines.

UPSC QEP 2026 Batch 5 - English

Buy now View Details

Submit Your Details to Learn More

NEEV GS + CSAT Foundation 2026/27

Buy now View Details

Our Popular Courses

UPSC Prelims Foundation Course (GS + CSAT)

UPSC Mains PYQ Solved

UPSC Mains Answer writing Course

UPSC Mains test Series 2026

Library

UPPSC Prelims Crash Course 2025 - NISCHAY

UPPSC Mains Course 2025

UPPSC Mains Course in Hindi

Best IAS Coaching In Delhi, UPSC Online & Offline Classes by IAShub

Are you dreaming of becoming an IAS officer? Then, IAShub can be your best guide. It is one of the Best IAS Coaching in Delhi. Many students who want to clear the UPSC exam join IAShub for learning. The institute gives both online and offline classes. Their teachers are experienced and helpful. They easily explain every topic. Students also get notes, tests, and tips to do well in the exam.

UPSC Online Classes by IAShub

IAShub is in Delhi and is trusted by many UPSC students. It offers coaching for every part of the UPSC exam – Prelims, Mains, and Interview. The classes are simple and easy to understand. The teachers are experts and guide students in the right way. IAShub is also known for its helpful notes, test series, and answer-writing practice. IAShub is the best coaching in Delhi and also gives UPSC Online Classes. This helps students from any place in India to learn. The online classes are live and also recorded. So, students can watch them anytime. These classes cover the full UPSC syllabus.

Key Offerings Provided by IAShub

Here are some important services provided by IAShub:

UPSC Prelims: IAShub teaches for Prelims with a focus on basics. It also gives daily current affairs and monthly magazines.
Classroom Courses: IAShub has classroom learning for students in Delhi. The environment is good and peaceful for study.
Live Classes: Students who live far can join live UPSC online classes. These classes are just like real classes.
QEP for Mains: The Quality Enrichment Program (QEP) is special for Mains preparation. It helps students write better and faster.
Answer Writing: Regular answer writing practice is given. Teachers also check answers and give tips to improve.
Free Resource: IAShub gives free notes by toppers and helpful Main Booster material.
Test Series: Test series are available for every subject. These help students know their weak points and improve.
Interview Guidance Session: IAShub also gives interview practice sessions with experts. These help students feel confident.

UPSC Exam Overview

The UPSC Civil Services Exam has three parts:

Prelims: It has two papers: General Studies and CSAT.
Mains: It has nine papers, including essays and optional subjects.
Interview: It tests the personality and confidence of the student.

This exam is tough, but with the right guidance, it becomes easy to manage. Students must study smart and stay regular.

How IAShub Helps in the UPSC Journey

IAShub supports students from the beginning to the end. It gives the right books, tests, and notes. The classes are easy to follow, and the teachers are always ready to help. Students get personal doubt sessions too. The test series and answer checking help students learn where they need to do better. Also, free study materials save time and money.
IAShub also guides students during the final stage – the interview. Experts take mock interviews and give useful tips. This full support makes IAShub one of the best IAS coaching in Delhi.

Best IAS Coaching In Delhi FAQs

Yes, IAShub offers live and recorded online classes. Students can attend from any part of India.

Classes are available in both English and Hindi, so students can choose the language they are comfortable with.

The classroom centre is located in Delhi. Students can visit and join offline batches there.

IAShub gives interview guidance sessions to help students prepare for the final round of UPSC.