India switches to rupees in trade with Russia

From next week, India will start settling accounts with Russia in rupees, Ajay Sahi, CEO of the Federation of Indian Export Organizations, told Mint.

“A number of issues have been resolved. Exporters and importers have begun to apply to banks to open (in rupees) accounts. Trade settlements with Russia under the new payment system are expected from next week for some transactions,” the official said.

According to the official, five or six banks in India have received permission to open special correspondent accounts for trademark settlements: “For example, there are six accounts opened with IndusInd, which means that six different Russian banks have opened accounts with this bank.” he said.

In early November, the Indian government allowed the use of the national currency in international trade settlements, and the Central Bank of India issued a parallel circular in mid-July, according to which Indian importers must pay for goods or services in rupees.

Source: News

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