India and Russia news: India and Russia mostly banks will work on the payment system this week

Employees of the Reserve Bank of India (RBI) and the Bank of Russia are ready to meet this week to give the final touches to the bilateral payment system to ensure smooth trade flows between the two nations without violating global sanctions, officials told ET. Russia faces tougher sanctions after invading Ukraine in late February.

The two sides will meet to discuss payment solutions such as Loro or Nostro accounts. The first is a third party account where a bank has a country account for another bank. The second involves a bank that has an account in another country with another bank.

“We will explore how we can open these accounts in the national currencies of India and Russia,” said one of the above.

The two-day meeting is likely to take place on Wednesday and Thursday in New Delhi.

Agenda for the meeting

In addition to central bankers, officials from ministries, banks and financial institutions on both sides will be present.

“The scale of such a meeting between the two countries is remarkable, although discussions will be extended before both sovereigns reach a conclusion,” said a man involved in the exercise. RBI and Bank of Russia did not respond to ET’s inquiries. We were unable to contact individual institutions immediately for comment.

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SBI,

“It is likely to represent Indian bankers along with the National Paying Corporation of India (NPCI) and the Association of Indian Currency Traders (FEDAI),” the people quoted above said.

“People with the status of general manager will probably join us, while employees of the Ministry of Finance are also expected,” said one person.

Heads of SberBank and VEB Bank Russia are expected to attend, as well as officials from the Russian Ministries of Trade and Foreign Affairs. Otkritie Bank, Novikombank, Bank of Russia, Promsvyazbank, VEB and VTB Bank are excluded from sanctions, according to the people quoted above.

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