Home Business Small Indian banks in talks with Russia to finalize trading mechanism: Official

Small Indian banks in talks with Russia to finalize trading mechanism: Official

Banks are discussing currency pair for payment mechanism.

New Delhi:

Indian lenders UCO Bank and Yes Bank are in talks with their Russian counterparts on a payment mechanism for trade between the two countries, a senior government official said on Thursday.

Reuters had reported that large lenders are reluctant to process direct rupee trade transactions with Russia for fear of Ukraine becoming a target of sanctions over the invasion, and New Delhi is relying on smaller banks such as UCO and Yes.

The official said banks are discussing currency pairings for the payment mechanism and options include the Russian ruble or the Indian rupee paired with Saudi Arabia’s rial.

“Some Russian banks are joining hands with UCO Bank and Yes Bank. It will be mainly rupee-based trading, may be rupee-ruble or may be rupee-rial,” the official, who did not wish to be named, said. told reporters in New Delhi.

The official did not specify how the rupee-rial mechanism would be put in place to settle trade between New Delhi and Moscow.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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