India and Russia have a long history of cooperation and support. Marching to the front, officials from both countries have implemented some of the most significant reforms to strengthen their relationship, this time financially.
As a result, Russia’s Mir payment system may soon be accepted at ATMs and POS terminals in India, as the two countries continue discussions to build a financial system that is unaffected by Western sanctions against Russia.
The European and Asian behemoth will almost certainly accept India’s RuPay payment system.
The Indian National Security Advisor met with Russia’s Secretary of the Security Council, Nikolai Patrushev, and Deputy Prime Minister and Minister of Industry and Trade, Denis Manturov, as well as other Russian government officials, to discuss future cooperation and associations.
Both countries are actively working on the interaction of the National Payment Corporation of India’s Unified Payments Interface (UPI) and the Bank of Russia’s Faster Payments System (FPS).
Aside from that, 15+ Russian banks are in discussions with Indian lenders to promote bilateral trade in their respective currencies (Rubles & Rupees respectively). With this, the customized trade accounts with Indian lenders will bypass the trade mechanism tied to the US dollar, and will work on developing a bespoke reference exchange-rate framework.
Petersburg Social Commercial Bank, Zenit Bank, and Tatsotsbank are among the Russian financial institutions that are likely to open these customized trade accounts. Bank of India, Canara Bank, and Uco Bank are likely to be the Russian lenders’ local partners.
Several organizations, including the Indian Banks’ Association (IBA) and the Indian Economic Trade Organisation (IETO), are actively involved in the procedures’ administration. Both the Reserve Bank of India (RBI) and the Central Bank of Russia would announce the customised common reference exchange rate on a daily basis.