Non-residents allowed to invest in corporate debt from special rupee vostro accounts

MUMBAI: The Reserve Bank of India on Friday allowed persons resident outside India holding Special Rupee Vostro Accounts (SRVAs) to invest their surplus rupee balances in corporate debt instruments, Previously, such investments were restricted to government securities

SRVA holders can now invest in non-convertible debentures (NCDs), bonds, and commercial papers issued by Indian companies, RBI said in a circular issued to Authorised Dealer Category-I banks.

The move will increase participation in the corporate bond market and make SRVAs attractive as it could fetch higher returns. The SRVA mechanism was introduced by the RBI in July 2022 to facilitate the settlement of international trade transactions in Indian rupees. Under the revised norms, Investments in corporate debt will be counted under the General Route limit for foreign portfolio investors (FPIs). Minimum residual maturity and issue-wise limits applicable to FPIs will not apply to SRVA-based investments.


( Originally published on Oct 03, 2025 )