The rupee-rial mechanism for trade between India and Iraq is more than a decade old now and it has taught UCO Bank a lot. When India, in 2012, proposed buying Iranian oil in rupees, the Kolkata-headquartered bank put up its hand.
When the Reserve Bank of India (RBI) in July allowed 20 domestic banks to open special rupee vostro accounts (SRVA) with partners in 22 countries, including Russia, that learning has come in useful. One lesson is that monies in SRVA should be allowed to be invested in Indian government securities.
It is possible that it is for this reason
