So far, rupee surplus balance in SRVA account could be invested only in Central Government Securities (including Treasury Bills)
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Dmitriy Razinkov
Balances in Special Rupee Vostro Account (SRVA), maintained by persons residing outside India, for international trade settlement in Indian rupees, can now be non-convertible debentures/bonds and commercial papers issued by an Indian company, according to the RBI.
This move is possibly aimed at attracting new investors into the corporate bond market and deepening it further.
So far, rupee surplus balance in SRVA account could be invested only in Central Government Securities (including Treasury Bills).
V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, said the move aims to gradually internationalise the rupee by enhancing the utility of SRVA balances, while simultaneously supporting the Indian corporate debt market and reducing excessive reliance on government securities.
As per a July 2022 RBI circular, the balance in Special Vostro Accounts can be used for payments for projects and investments, export/import advance flow management and Investment in Government Treasury Bills, Government securities, in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.
Investments from SRVA balances in non-convertible debentures/ bonds and commercial papers issued by an Indian company will be subject to the investment limit and stipulations specified for FPI investments under the General Route.
Residual maturity
However, there will be no minimum residual maturity requirement and issue-wise limits to investments made under the SRVA route.
The primary responsibility of complying with all applicable limits for such investments shall lie with the SRVA holders and the AD (banks authorised to deal with foreign exchange) Category – I banks where these accounts are maintained.
AD Category-I Banks will facilitate opening of separate demat accounts for SRVA holders for holding their investments in non-convertible debentures/bonds and commercial papers issued by an Indian company.
The aforementioned banks will report the transactions by SRVA holders in non-convertible debentures/bonds and commercial papers issued by an Indian company to depository(ies) registered with SEBI, for reckoning them under the investment limits for corporate debt securities under the General Route..
Published on October 3, 2025
