DFCC Bank PLC Establishes Indian Rupee Nostro Account with HDFC Bank India
DFCC Bank PLC has announced the opening of an Indian Rupee-denominated Nostro Account with HDFC Bank in India.
The move follows the Central Bank of Sri Lanka (CBSL) classifying the Indian Rupee as a designated foreign currency. “With the opening of the INR Nostro account, we see great potential for trade, tourism, and investments between the two nations,” says Prins Perera – SVP of Treasury and Investment Banking at DFCC Bank.
By establishing a Nostro Account in Indian Rupees, DFCC Bank is acting as a facilitator to enable Sri Lankan and Indian importers and exporters to carry out trade transactions in Indian rupees in a manner that is beneficial to both parties. India has traditionally been among Sri Lanka’s largest trade partners in the SAARC region, with ties in infrastructure, connectivity, transportation, housing, health, livelihood and rehabilitation, education, and industrial development.
In the present context, where Sri Lanka is facing a dollar shortage, traders can now resort to Indian Rupees for settlements. This move also allows hotels to invoice in INR and accept INR currency notes in the future. As per available statistics, Indian tourists make up 13% of new arrivals in the first two months of 2023, which means this effort will help better facilitate and promote tourism between the two countries.
HDFC Bank Ltd is the largest private sector bank in India, with 7,183 branches across the country. This new arrangement between DFCC Bank and HDFC Bank, India, is expected to provide a secure and reliable transaction platform between the two nations.
DFCC Bank intends to utilise its network of branches across the country to personally communicate and showcase the benefits of this new platform to importers and exporters, investors, students, and tourists, dealing with India. The move is set to create new opportunities for businesses and individuals alike, fostering greater economic and cultural ties between India and Sri Lanka.