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All RBI Circulars August 2025 detailed explanation I Monthly RBI Circulars - August I Hindi Telegram channel link : https://t.me/decodeindian1 WhatsApp us at: 7890619688 or Click here - https://wa.me/message/YLBQQO7PA4WKL1 International Trade Settlement in Indian Rupees (INR) What is Special Rupee Vostro Accounts (SRVAs)? A Special Rupee Vostro Account is a type of bank account maintained by an AD bank in India on behalf of a foreign bank or financial institution, denominated in Indian rupee (INR). These accounts are used to facilitate cross-border transactions, particularly for trade and payments, in INR rather than foreign currencies like the US dollar. SRVAs were introduced by the RBI as part of its July 2022 framework to promote the use of the Indian rupee in international trade and reduce reliance on foreign currencies, particularly the US dollar. Who is an Authorized Dealer (AD)? On a review, it has been decided to allow AD banks to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval. An Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities and normally includes banks. Reserve Bank, currently, issues authorisation under Section 10(1) of the Foreign Exchange Management Act, 1999, to select banks (as Authorised Dealers Category-I) to carry out all permissible current and capital account transactions as per directions issued from time-to-time. select entities (as Authorised Dealers Category-II) to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers and any other activity as decided by the Reserve Bank select financial and other institutions (as Authorised Dealers Category-III) to carry out specific foreign exchange transactions incidental to their business / activities select registered companies as Full Fledged Money Changers (FFMC) to undertake purchase of foreign exchange and sale of foreign exchange for specificied purposes viz. private and business travel abroad. Reserve Bank of India (Co-Lending Arrangements) Directions, 2025 These Directions shall be called Reserve Bank of India (Co-Lending Arrangements) Directions, 2025. These Directions shall come into force from January 1, 2026, or from any earlier date as decided by a RE as per its internal policy (“effective date”). Any new CLA entered into after the effective date shall be in compliance with these Directions. Existing CLAs (i.e., the lending arrangements executed before the date of issuance of these Directions) and new CLAs entered into prior to the effective date shall be in compliance with the extant regulations. These Directions shall be applicable to CLAs entered into by the following REs: Commercial Banks (excluding Small Finance Banks, Local Area Banks and Regional Rural Banks); All-India Financial Institutions; and, Non-Banking Financial Companies (including Housing Finance Companies). Definitions For the purpose of these Directions, CLA refers to an arrangement, formalised through an ex-ante agreement, between a RE which is originating the loans (‘originating RE’) and another RE which is co-lending (‘partner RE’), to jointly fund a portfolio of loans, comprising of either secured or unsecured loans, in a pre-agreed proportion, involving revenue and risk sharing. General Guidelines Each RE under a CLA shall be required to retain a minimum 10 per cent share of the individual loans in its books. The credit policy of a RE shall suitably incorporate provisions relating to CLAs, including the internal limit for the proportion of their lending portfolio under CLAs; target borrower segments; due diligence of the partner entities; customer service and grievance redressal mechanism. Interest Rate and Other Fees/ Charges The interest rate and any other fees / charges on the underlying loans charged to the borrower shall be based on the contractual agreement, subject to the regulatory norms applicable to the REs. Specifically, the final interest rate charged to the borrower shall be the blended interest rate which is calculated as an average rate of interest derived from the interest rates charged by respective REs, as per their internal lending policies and risk profile of the same or similar borrower, weighted by the proportionate funding share of concerned REs under CLA. The CLA shall ensure that the respective shares of the REs are reflected in the books of both REs without delay after disbursement by the originating RE to the borrower, in any case not later than 15 calendar days from the date of disbursement.