Shaktikanta Das 1

In July, the RBI had announced measures to strengthen the Indian currency against the dollar in the world market. / The Indian Express

Reserve Bank Of India- Advices to do a framework that safeguards banks in lending money to companies having west influence

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Amidst the prevailing war between Russia and ukraine, a new guideline from RBI to banks to take precautions before lending money to the organizations linked with Europe and America to curtail loss.

Regarding this the government wants the state- owned banks to open special rupee Vostro accounts to push the trade with Russia and other nations, alongside worryin about the fizzling markets of Europe and America.

According to the report, the meeting held on November 16 resulted in advising the banks to maintain the decorum of sectoral quota to please the credit growth in the domestic market positively. The meeting was articulated by RBI Governor Shaktikanta Das and attended by the controllers of all the public sector banks.

The guidelines devises Indian banks to incharge the accounts of the countries trading with India . Still and all, State bank of India and other banks have been disinclined towards the proposal, to push trade with Russia , after having premonitions of the sanctions from West and eyeing the ongoing war of Russia with Ukraine.

As far as concerned , 12 special Vostro accounts have been opened by banks like the state-owned UCO Bank and private sector IndusInd Bank and Yes Bank, and their corresponding Russian partner banks. Inspite of the sanctions imposed on Russia, India is still volumizing its trade with Russia with a pace.

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