International trade in rupee soon with help of Vostro accounts: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Saturday expressed hope that traders will soon be able to settle foreign trade in the rupee currency as several banks from different countries are opening special Vostro accounts with Indian banks.

The Reserve Bank of India (RBI) has approved 60 requests to open Special Rupee Vostro Accounts (SRVAs) of correspondent banks from 18 countries, including the UK, Singapore, and New Zealand.

The central bank, he said, is in discussion with its counterparts in different nations on this.

“We will soon start seeing operationalisation of this rupee trading in international trade with several countries,” Goyal told reporters here.

He also said that negotiations for free trade agreements (FTAs) with developed regions like the European Union, the UK, and Canada are in “advanced” stages.

Groups including European Free Trade Association Free Trade Agreement (EFTA), Gulf Cooperation Council (GCC) and Eurasian Economic Union (EAEU) are also keen to start talks for similar pacts with India.

“The whole world wants to have a comprehensive economic partnership agreement with India,” the minister said.

On the second phase of the production-linked incentive scheme for the textiles sector, he said that extensive stakeholder discussions have happened on the subject.

“I am quite confident that very soon we will be able to finalise the contours of the scheme and take it up for approval at the highest level,” he added.