Mumbai: Huge Indian Lenders are reluctant to process directly Rupee Business transaction with Russia months later Mechanism It was placed for fear of becoming a target of sanctions by the United States and Europe on the invasion of Ukraine, sources say Told.
two little Lenders In July, the Reserve Bank of India (RBI) said it had set up a system for international Business settlements in Indian RupeeWith immediate effect
but big Lenders With greater exposure to the international financial system, and the dollar in particular, there are concerns that their businesses could be disrupted if targeted by sanctions.
Western sanctions to punish Russia Trying to limit Moscow’s access to foreign currency, especially the dollar, for its invasion of Ukraine. deep in india Business concerned with RussiaAnd this Rupee Mechanism Can help bypass the US dollar and the euro for settlements.
One Indian diplomat Russia Told Russian banks had reached eight Huge Indian to install equivalent Rupee Business settlements, but Indian Banks did not respond.
Some of these banks in India HugeState Bank of India, Punjab National Bank, Bank of India, Bank of Baroda and Central Bank of India, the source said.
None of these banks responded to e-mail requests seeking comment.
but many sources say Banks confirmed privately that they had decided not to use the structure, at least for now.
One of them, a senior executive Huge The state-owned bank said, using such an agreement Mechanism There may be a violation of some restriction rules. “They (Western countries) can impose sanctions on us, it will be a big business and loss of reputation,” the banker said.
Indian Banks continue to settle Business with rejected Russian entities in dollars or euros, but sources say He said that he believed that in the settlements Rupeemay come under more scrutiny.
Another banker said the new settlement system could raise questions in the West and lead to sanctions. “The process to lift them can take months and that is a risk that banks are not willing to take,” the source said.
The United States imposed sanctions on Major Russian Banks, other institutions, after the invasion of Ukraine by President Vladimir Putin and oligarchs, and anyone dealing with a sanctioned entity can also attract sanctions.
a third source a Huge Indian The bank said that the lack of liquidity Business more liquid than in rubles Rupee made it difficult to determine an exact ruble-Rupee exchange rate, another factor that is stopping Indian Bank.
even if they managed to get over that hurdle, what might Russian do with a pool of bank RupeeSitting at an account in India, the source asked. Indian banks do not have Huge The ruble reserve, therefore, could not offer direct currency exchange.
two little Indian Banks which have started the account opening process for settlement Business with Russia In RupeeThe private lender is Yes Bank and the state-owned lender is UCO Bank.
The diplomatic source said that Yes Bank has tied up with PSCB Bank in St Petersburg. UCO Bank has got RBI nod to open a special Rupee account for RussiaK Gazprombank, and its chief executive Soma Shankar Prasad, told Reuters last month that it expects to do so soon.
Yes Bank, UCO Bank, The Indian bank association and Indian The finance ministry did not respond to an email seeking comment.
According to government figures, Indian import from Russia A sharp increase in oil purchases led to $17.24 billion in April-August this fiscal year from about $3.2 billion a year ago.
Indian export to Russia It declined to $992.73 million in April-August from $1.31 billion in the same period last year. -Reuters
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