Russia Offers SWIFT Alternative to India for Ruble Payments
By Lokmat English Desk | Updated: March 31, 2022 17:42 IST2022-03-31T17:42:43+5:302022-03-31T17:42:43+5:30
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India’s government is considering a proposal from Russia to use a system developed by the Russian central bank for bilateral payments, according to people with knowledge of the matter, as the Asian nation seeks to buy oil and weapons from the sanctions-hit country.
The plan involves rupee-ruble-denominated payments using Russia’s messaging system SPFS, the people said, asking not to be identified discussing confidential deliberations.
No final decision has been taken and the matter will probably be discussed when Russian Foreign Minister Sergei Lavrov arrives in India for a two-day visit Thursday.
Russian central bank officials are likely to visit India next week to discuss the details, the people said.
The Reserve Bank of India regularly meets with executives from its banking system to discuss matters including exposure to Russia and the risk of sanctions, another person said.
India is keen to continue bilateral trade due to its dependency on Russian weapons and the prospect of buying cheaper oil as global prices surge.
Prime Minister Narendra Modi’s government has been pushing back against pressure from Western nations by arguing that arms purchases from Russia are needed to counter China’s growing military assertiveness.
Under the proposal, rubles will be deposited into an Indian bank and converted into rupees and the same system will work in reverse, one of the people said. Undecided elements include whether the exchange rate will be fixed or floating.
