VTB launched direct settlements in rupees for small and medium-sized businesses

VTB launched a mechanism for direct settlements in Indian rupees for small and medium-sized businesses. This will avoid double conversion, speed up and simplify the work on foreign trade contracts.

“The direct settlement mechanism allows VTB clients to immediately fix the price of goods and the amount of payment in national currency, receive individual quotes on market conditions and reduce costs due to the absence of additional conversion,” VTB said in a statement received by Kommersant. It is noted that the mechanism will also eliminate the need for preliminary approval of operations.

By information Indian media, the first transactions with settlements in rupees were carried out at the end of December. Vostro accounts (opened by a foreign bank with a resident bank in local currency or in the currency of a third country) were opened by such Russian banks as Sberbank, VTB, Gazprombank, BCS, MTS, Tinkoff Bank, Soyuz, Credit Europe Bank, PSCB, Rosbank and AKB.

Director of the Second Department of the Russian Foreign Ministry Zamir Kabulov last week informedthat Russia and India are “fundamentally moving away” from the dollar and the euro in mutual trade. In his opinion, it is not possible to completely switch to national currencies due to an imbalance in trade operations.

What Russian business thinks about settlements in Indian currency – in the material “Kommersant FM” “Importers get rupees”.

Leonid Uvarchev