India and Russia develop new interbank exchange systems

India and Russia are working on new mechanisms for financial exchange to bring predictability to trade operations. The move was announced by Indian Ambassador to Russia Vinay Kumar during the Eastern Economic Forum.

“We are addressing important issues related to finance and logistics. We are currently developing new messaging systems between banks. This should create a foundation for predictable trade and allow us to achieve the targets set by the leaders of the two countries during their meeting in Moscow,” the diplomat stated.

Since 2022, Moscow has been searching for alternative financial systems to use with its trading partners. New interbank exchange systems are intended to facilitate smoother transactions between Indian and Russian banks.

Sberbank, Russia's leading financial institution, recently reported that its business with India is booming. The bank handles payments for up to 70% of all Russian imports from India, with bilateral trade nearly doubling to ₹5.4 lakh crore ($65 billion) in 2023. Sberbank’s current processing times for transactions in both roubles and rupees rarely exceed a few hours.

Source: TASS