NEW DELHI: Banking Secretary Vivek Joshi will hold a meeting on February 05 to discuss various bilateral trade issues. According to government sources, external affairs ministry officials and the head of Insurance Regulatory and Development Authority of India (IRDAI) will also be attending the meeting besides banking officials.
"The meeting will address critical trade matters and will be attended by high-ranking officials including the Deputy Governor of the Reserve Bank of India, Additional Secretaries from various relevant departments, and CEOs of prominent banks including State Bank of India, Punjab National Bank, Canara Bank, and others," a top government source said.
"Matters related to rupee trade settlement and operationalisation of special vostro rupee accounts will be discussed in the meeting," he added.
The meeting holds significant importance in the context of India's bilateral trade relations. "Amid crisis in Middle East and ongoing Russia-Ukraine war, Vostro accounts, which are used by banks to hold money for foreign entities, become significant in facilitating international trade and financial transactions."
These accounts can be critical for enabling countries to conduct essential trade and financial activities, especially when traditional channels may be disrupted due to geopolitical tensions or conflicts," a government official who didn't want to be quoted said.
"It is critical to maintain some level of financial connectivity between countries even during wartime, allowing for essential transactions to continue," the official cited above further said.