DFCC Bank PLC Establishes Indian Rupee Nostro Account with HDFC Bank India
March 28, 2023
DFCC Bank PLC, the Bank for Everyone – with a perceptive feeling of the pulse of customers and Sri Lankans in general- 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.
Prins Perera- Senior Vice President- Treasury and Investment Banking at DFCC Bank
About DFCC Bank
DFCC Bank is a full-service Commercial Bank with a legacy of 66 years that offers a range of commercial and development banking services. The Bank’s Sustainability Strategy 2020–2030 envisions it becoming one of the leading banks that will contribute toward greater resilience, including the creation of Resilient Businesses that contribute to sustainable economic growth by extending support to Green Financing and, Sustainable and Social Entrepreneurs. The Bank has won awards for being the ‘Most Trusted Retail Banking Brand’ and the ‘Best Customer Service Banking Brand’ in Sri Lanka, 2021 from the prestigious Global Brands Magazine, UK, and was awarded ‘Market leader in Cash Management 2021’ by Euromoney. DFCC Bank was ranked amongst Business Today’s Top 40 Corporates in Sri Lanka. DFCC Bank is rated [SL] A+ by ICRA Lanka Limited and A+ (lka) by Fitch Ratings Lanka Limited as a licensed specialised bank supervised by the Central Bank of Sri Lanka