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Rupee Trade Settlement Push Through SRVA Amid US Tariffs

9 April 20251 min read
BANKING & FINANCERupee TradeSettlement PushThrough SRVAAmid US Tariffs9 April 2025safalsetu.com

Why in the news

After the new US tariff, India is nudging banks and partners towards rupee settlement to lower dollar dependence and forex costs.

Key facts

  • Infinet: the Indian Financial Network, used so far for domestic interbank transfers, is being opened to foreign users for SRVA transfers.
  • Pipeline: more bilateral local currency pacts are coming.

Strategic goals

  • Insulate India from currency shocks and strengthen resilience in tariff wars.
  • Let banks gain from the move towards bilateral and multipolar trade.

Next steps

  • An RBI and major banks stakeholder meeting is likely later this month on SRVA hurdles, technical readiness and compliance.

Exam angle

  • Account type: SRVA.
  • Network: Infinet.

Test yourself

1. Which account system is the government promoting for rupee-based trade settlement?

The government urged banks to use the Special Rupee Vostro Account (SRVA) system.

2. India has signed local currency settlement deals with which set of countries, per the notes?

The notes list the UAE, Indonesia and the Maldives.

3. RBI plans to open which network to international participants for SRVA transfers?

The Indian Financial Network (Infinet) is being opened to global users.

This topic is part of Daily Current Affairs 9 April 2025 (25 topics).

All topics of the dayDay quizApril 2025

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