Rupee/Kyat Direct Payment System: Operationton start in February using SRVA

The Rupee/Kyat direct payment system will started to operate in February using Special Rupee Vostro Account (SRVA). For smooth implementation of this initiative, the Central Bank of Myanmar organized a meeting on Rupee/Kyat Trade SettlementMechanism in Nay Pyi Taw on Friday.

Speaking on the occasion, Governor of the Central Bank of Myanmar Daw Than Than Swe pointed out that Rupee/Kyat PaymentWorking Committee is formed to implement Rupee/Kyat Trade settlement Mechanism.

With the collaboration of CBM, the Embassy of India, Reserve Bank of India, and the Department of Financial Services of the Ministry of Finance, the Joint Concept Note Paper and Standard Operating Procedures (SOPs) were already confirmed after holding several discussions.

He added that the guideline for the use of Special Rupee Vostro Account (SRVA) in bilateral trading between India and Myanmar is already issued. The implementation of this system will help to reduce the need for USD in importing goods and medicine from India,which lead to stronger bilateral relationship ensuring seamless bilateral trade.

Then, the officials from Rupee/Kyat Direct Payment designated banks; UABBank Ltd, CB Bank PCL and Punjab National Bank clarified the Rupee/Kyat TradeSettlement Mechanism. Then, the relevant officials made discussions on bilateral trade between India and Myanmar and rupee/kyat direct payment system.The meeting was concluded by the closing remarks of the Governor of the Central Bank of Myanmar.