TIL Desk/Business/New Delhi/ India has decided to authorise the country’s biggest lender SBI to promote rupee trade with Russia and soon Moscow will name its bank to operationalise the mechanism, exporters’ body FIEO said on Wednesday. The RBI in July issued a detailed circular asking banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.
Currently, a large part of bilateral trade between India and Russia is getting settled in rupee due to sanctions imposed by the US and Europe following Moscow’s attack on Ukraine. The RBI had said for settlement of trade transactions, the concerned banks will require special rupee vostro accounts of correspondent bank/s of the partner trading country.
Federation of Indian Export Organisations (FIEO) president A Sakthivel said that the SBI (State Bank of India) is equipped with doing business in rupee with Russia, but Moscow has to identify one bank. “Yesterday commerce secretary (B V R Subrahmanyam) was there with us in the evening. “He said that very soon Russian government is going to identify a bank…Rupee trade with Russia will happen,” Sakthivel told reporters.
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