India is exploring a rupee payment mechanism with the objective of trying to guarantee that Russian banks and firms open accounts with state-run Indian banks in order to settle trade settlement. This entire scheme is for the purposes of establishing trade with Russia and to avoid sanctions.
According to Reuters, the central government is investigating alternatives to build up a rupee payment mechanism with Russia in order to circumvent the western sanctions placed on Moscow.
Concerns about Russian fertiliser supply to India have prompted this decision, which comes as sanctions against Russia have been tightened as a result of the country's ongoing confrontation with Ukraine.
Concerned officials revealed that the objective is to guarantee that Russian banks and firms open accounts with state-run Indian banks in order to settle trade settlement.
These accounts' funds will serve as a guarantee of payment for trade between India and Russia. In the meanwhile, the parties in...