RBI And Bank Of Russia To Prepare Regulatory Framework For Trade And Banking Operations

The Reserve Bank of India (RBI) officials will hold discussions with their counterparts from the Russian central bank to make a regulatory framework to sustain bilateral trade and banking operations between the two countries.

Talks are also underway to create a dedicated payment mechanism in order to facilitate India’s energy purchases from Moscow.

A formal meeting between RBI and the Russian officials could take place as early as next week.

“The government has given an in-principle green signal for the INR-rouble trade, and it now needs to be brought under a regulatory framework. This meeting will be first in that direction,” an official in the know of developments was quoted in a report by the Economic Times (ET).

The RBI has already conducted a meeting with top Russian financial institutions to further explore the options of developing a workable payment mechanism between India and Russia.

Meanwhile, the Union Commerce and the External Affairs ministries are drawing out the strategies for the collaboration between two countries amidst western sanctions against Moscow owing to the ongoing Russia-Ukraine war.