National Banks of Russia and India do not see any barriers to making settlements using national currencies

The National Banks of Russia and India do not see any regulatory restrictions when it comes to making settlement in rubles and rupees on trade contracts.

The National Banks of Russia and India do not see any regulatory restrictions when it comes to making settlement in rubles and rupees on trade contracts. The banks will soon be holding discussions with the business communities of the two countries on the possibilities of using national currencies in mutual settlements, according to the materials released by the Central Bank of the Russian Federation.

Ksenia Yudaeva, First Deputy Chairwoman of the Bank of Russia and Harun Khan, Deputy Governor of the Reserve Bank of India chaired a regular meeting of the Subcommittee on Bilateral Financial and Banking Issues – a profile body within the Russian-Indian Intergovernmental Commission.

Representatives of Russian and Indian banks, as well as trade representative of Russia in India attended this meeting. The parties discussed current issues in Russian-Indian cooperation related to the banking sector, including issues of cooperation between Russian and Indian credit institutions.

“The subcommittee considered the findings and recommendations of the expert working group on the issue of making settlements using national currencies. In its report, the subcommittee of the working group noted that there are no serious regulatory obstacles to making settlements in rubles and rupees on trade contracts, and suggested using standard settlement models, which on the whole correspond to existing commercial practices of the banks of the two countries,” according to the materials of the Central Bank.

“It was decided to hold discussions with the business communities of the two countries on the possibility of wider practical application of these models, as well as on measures to reduce transaction costs when making settlements in national currencies,” the report notes.

First published in Russian by RIA Novosti.

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