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UCO Bank in process of opening special Vostro a/c

September 29, 2022

UCO Bank in process of opening special Vostro a/c
State-owned UCO Bank is in the process of opening a special Vostro account with Russia’s Gazprombank for settlement of trade in Rupee against the backdrop of sanctions imposed by western countries on Russia following its invasion of Ukraine. “The deal between UCO Bank and Gazprombank comes as the Reserve Bank of India implements a system to facilitate international payments through special Vostro accounts to promote trade in Rupee,” UCO Bank MD &CEO Soma Shankara Prasad told PTI on Wednesday.

Under the Rupee Drawing Arrangements (RDAs), the bank of a partner country opens a special INR VOSTRO account with a bank in India. Prasad said the bank is in the process of opening this special Vostro account with the Russian lender.

“We have received approval from RBI for opening a Vostro account with Gazprombank and currently the process is in progress,” Prasad said without giving a timeline for completion of the same.

“We have asked for certain papers from them and it depends on how soon they send them to complete the process.”

The Kolkata-headquartered bank already has a Vostro account-based facility with Iran.

However, this time the Vostro account with Russia is not exclusive, unlike in the case of Iran in the past, Prasad said.

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