India, Russia Mull Payment System Integration in Face of US Sanctions
The governments of India and Russia are considering integrating part of their payment systems, in order to counter the possible future effect of US sanctions on the capital flows of each country. The deal would include the integration of India’s Rupay card system and its Russian counterpart, Mir Cards, to allow seamless payments between the two countries.
Russia and India Consider Integration of Payment Stacks
Russia and India are mulling the integration of their debit payment stacks in order to prevent negative affects on their common payment flows by a hypothetical extension of U.S. sanctions in the future. In a recent high-level meeting, in which India’s External Affairs Minister Subrahmanyam Jaishankar and Russian Deputy Prime Minister Denis Manturov were present, the countries agreed to explore this integration to facilitate capital flows.
The agreement included considering the acceptance of Russia’s Mir Cards system in India, and India’s Rupay system in Russia, allowing citizens of both countries to make cross-border payments using debit cards natively.
There were also talks about a higher integration at the event, with authorities agreeing to further explore the interaction of the Unified Payments Interface (UPI), the Indian payment stack, and the Faster Payments System (FPS), its Russian counterpart.
India has been active in integrating its payment system with other countries. In February, it linked Singapore’s payments system, called Paynow, into its payment stack, allowing cross-border payments between the two countries without using additional payment bridges.
Preventing US Sanction Effects
The main objective behind this exploration is to prepare for a possible extension of U.S. sanctions that would cut the connection between the banking systems of the two countries, making the possibility of direct payments unfeasible. While this is being projected into the future, some Indian companies have already been unable to collect payments linked to dividends of Russian oil companies due to the sanctions enacted by the U.S. government on Moscow.
According to local reports, ONGC Videsh Ltd, Oil India, Bharat Petroleum Corp, and Indian Oil Corp — four Indian companies — have had payments of between $300 and $400 million blocked since last year due to the disconnection of Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, that allows for cross-border payment using the current banking system.
Tags in this story External Affairs Minister Subrahmanyam Jaishankar, Faster payments systems, India, Mir Cards, Rupay, Russia, Russian Deputy Prime Minister Denis Manturov, Swift, US sanctions
What do you think about the possible integration of the Indian and Russian payment systems to minimize the effect of US sanctions? Tell us in the comment section below.
China Ramped Up Gold Production During Q1 Amidst Steady Demand From Central Banks FINANCE | 6 hours ago BRICS to Promote National Currencies Before Issuing Common One FINANCE | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Ethereum Shapella Upgrade Sets the Stage in Latest ProBit Global Trading Contest
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this … read more.
Today’s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design