Final answer:
The SWIFT network helps in the secure transmission of payment information internationally. Nostro and Vostro accounts are used by banks to manage foreign currency and are crucial for international trade settlement. The Globalization of the INR signifies efforts by the Indian government and RBI to promote the use of the rupee in international trade to strengthen its economy and currency.
Step-by-step explanation:
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized, and reliable environment. In the context of international trade and treasury products, SWIFT codes are used to facilitate the rapid and accurate cross-border payments.
A Nostro account is a bank's account held in a foreign currency in another bank. These are used to facilitate settlement of foreign exchange and trade transactions. The term Nostro is Latin for 'ours,' indicating that the account is ours from the holding bank's perspective.
A Vostro account is essentially the opposite; it's an account a bank holds on behalf of a foreign bank. The term Vostro is Latin for 'yours,' from the perspective of the foreign bank whose money is deposited. These accounts are used to keep funds in local currency for settlement and clearing of transactions.
A Special Vostro Account can refer to an account used for specific purposes, such as facilitating the trade of Indian Rupees (INR) with another country which might be part of a bilateral agreement. It can also reference the recent initiative by the Indian government and the RBI (Reserve Bank of India) to globalize the INR, encouraging the use of INR for international trade transactions to reduce dependency on other major currencies like the USD or EUR.
The term 'Globalization of INR' refers to the strategies and policies adopted by the Government of India and the Reserve Bank of India (RBI) to promote the use of the Indian Rupee in international trade. This is conducted to lower exchange rate risks, facilitate trade with countries facing currency restrictions, and strengthen the country's economy.