Correct Answer : Option (D) - Indian Bank
Indian Bank has received the Reserve Bank of India (RBI) regulatory approval to hold special rupee vostro accounts of three banks from Sri Lanka.
The lenders are struggling against serious foreign exchange crunch.
The Chennai-headquartered public sector bank, which has had a long presence in the South Asian island nation, is expected to activate the special vostro accounts in about a week.
A vostro account in local currency would allow Sri Lanka to import from India without dipping into its declining dollar supply.
The INR vostro facility is part of the special trade settlement mechanism finalised by the RBI in July 2022.
The arrangement allows
Indian importers to deposit rupees in vostro accounts that overseas banks open with banks in India and clearing of dues to
Indian exporters from the surplus balances in the
vostro accounts..
Source : Money Control
