Second largest bank of Russia launches direct payments in rupees

NEW DELHI : Russian VTB Bank, Russia’s second largest bank, launches direct payments in rupees in what would boost bilateral trade and investments in a big way.

Russian SME clients can now make transfers without double conversion, which simplifies the work on foreign trade contracts with India.

The mechanism of direct settlements allows to fix the price of a product and the payment in the national currency, and to receive individual quotes on market terms.

It also eliminates preliminary coordination of the transactions, according to the VTB’s press service.

Nine Russian banks, including VTB, opened special vostro accounts in India to facilitate Russian-Indian trade in November 2022. Certain Indian banks opened special Vostro accounts for trade with Russia.

VTB Bank and its subsidiaries form a leading Russian financial group – VTB Group uniting VTB banks located in different countries and offering a wide range of corporate banking services and products.