Russia’s VTB Bank Opens Special “Vostro” Account in India Branch
Russia’s No. 2 lender VTB on Wednesday said it had opened a special “vostro” account at its Indian branch to enable more active use of the Indian rupee in contractual payments. export-import contract between Russia and India.
It follows a similar move by Sberbank, Russia’s dominant lender, which on Monday said it was offering customers “vostro” accounts denominated in rupees, aimed at facilitating customers’ convenience. The demand in conducting commercial transactions in rupees is increasing due to Western sanctions.
Both state-run banks were authorized to open vostro accounts – held by a local correspondent bank on behalf of a foreign bank – from the Reserve Bank of India (RBI), at the beginning of this year. this year to put in place a mechanism to facilitate international trade. in rupees.
The measure is seen as supporting business relations with Russia in the event of stricter Western sanctions against Moscow.
Following sanctions by the United States and its allies after Russia sent tens of thousands of troops into Ukraine in February, Moscow has asked some buyers of its goods to pay in rubles or other currencies instead. because of the dollar and euro, in which their contracts are usually priced.
“Today, one of the most important tasks of the state is to develop settlements directly denominated in the national currency with the aim of strengthening trade and economic relations,” said Valeriy Lukyanenko, vice president of the association. VTB’s board of directors, said in a statement.
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