RBI accords ‘infra finance company’ status to IREDA

• With the IFC status, IREDA will be able to take higher exposure in RE financing. The IFC status will also help the company to access a wider investor base for fund mobilisation, resulting in competitive rates for fundraising.
• The recognition of IREDA as an IFC will increase the investors’ confidence, enhance the brand value and generate a positive outlook in the market.
• The grant of IFC status is a recognition of IREDA’s 36 years of infrastructure financing and development with focused development of renewable energy.
• With IFC status, IREDA will keep contributing towards the government target of 500 GW installed capacity of non-fossil fuels by 2030.

Banks from 18 countries get RBI’s nod to trade in rupee: Centre in RS

According to the government, the Reserve Bank of India (RBI) has allowed banks from 18 different nations to open Special Vostro Rupee Accounts (SVRAs) in order to settle payments in rupees. Bhagwat Kishanrao Karad, the Union Minister of State for Finance, stated in the Rajya Sabha that the RBI had granted 60 such approvals.

These 18 nations include Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom.

India and The Special Vostro Rupee Accounts (SVRAs):

• The process of SVRAs began in July 2022 when the RBI announced that, “it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR [Indian rupees]”.
• The announcement came against the backdrop of the commodities crisis triggered by the Western sanctions against Russia after President Vladimir Putin launched the “special military operation” against Ukraine in February 2022.
• Trade in local currencies have been mooted as a solution to avoid the current wave of wartime international sanctions that are hampering supply chains and global trade flows.

Economy Current Affairs March 2nd Week 2023