India’s State Bank Opening Rupee Accounts for Trade With Russia

State Bank of India is opening special rupee accounts to handle Russia-related trade settlements in the local currency but is not the main bank for such business.

Following guidelines laid out by the Reserve Bank of India, the State Bank of India is processing requests from various banks. In July, the banking regulators allowed Indian banks to open rupee vostro accounts with other countries to settle overseas trades in the Indian currency.

India has a plan to smoothen Russian trade.

The Reserve Bank of India allowed all banks to open special rupee vostro accounts. The media reported that the main bank for trade with Russia was the State Bank of India.

Many with an overseas presence are becoming more cautious about their operations because of western sanctions. They want to know if their businesses will be protected from sanctions when they deal with Russia.