The Indian Banks Association (IBA) is reportedly working to facilitate talks between fifteen or more Russian banks and various Indian lenders, to establish a mechanism for bilateral business in their respective local currencies, ET Now reported Aug. 22. Talks are described as “advanced.” As the daily put it, “the lenders of both countries are in discussions to conduct trade by bypassing the established trade mechanism tied to the dollar.” Russian banks involved in talks include Petersburg Social Commercial Bank, Zenit Bank, and Tatsotsbank. Among the Indian banks are Bank of India, Canara Bank, and Uco Bank.
Under discussion is the setting up of a customized, common reference exchange rate, which would be announced daily by the Reserve Bank of India (RBI) and the Russian Central Bank. According to the Deccan Herald, discussion involves mutual acceptance of India’s national RuPay and Russia’s Mir payment systems. During his unannounced visit to Moscow, August 17-18, Ajit Doval, National Security Adviser to India’s Prime Minister Narendra Modi, discussed these matters with Russian Security Council Secretary Nikolai Patrushev and with Denis Manturov, Deputy Prime Minister and Minister of Industry and Trade.
