The Reserve Bank of India (RBI), updated as on October 1, 2026, has updated the Master Direction – Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses. The Master Direction governs the opening and maintenance of Vostro Accounts by Authorised Category-I banks with non-resident Exchange Houses under the Rupee Drawing Arrangement (RDA), which facilitates receipt of cross-border remittances from overseas jurisdictions.
The Direction is issued under Section 11 of the Foreign Exchange Management Act, 1999 (FEMA) and consolidates the instructions applicable to Authorised Persons, including Authorised Category-I banks, for conducting foreign exchange business in relation to these accounts. Under the RDA framework, Authorised Category-I banks enter into tie-ups with non-resident Exchange Houses to open and maintain their Vostro Accounts in India.
The Master Direction also clarifies that reporting requirements are governed by the Master Direction on Reporting, while RBI may issue further instructions through A.P. (DIR Series) Circulars whenever changes are made to the applicable regulatory framework or transaction procedures. The Master Direction will be amended suitably whenever such changes are issued.
[RBI/FED/2015-16/16]
