New Delhi: Russia and India are keen to link their national payment systems, and the topic will be high on the agenda when President Vladimir Putin visits New Delhi in December, according to media reports from Moscow.
Deputy Foreign Minister Andrey Rudenko told Izvestia that Foreign Minister S. Jaishankar, during his visit to Moscow earlier this month, had discussed the linking-up of Russia’s Mir and RuPay systems with Indian services when he met President Vladimir Putin.
The details were shared on Thursday, November 27, on RT’s news site – formerly known as Russia Today – a government-funded and controlled international news television network.
According to the RT, Rudenko told the Izvestia that Moscow is hopeful that the countries can agree on the mutual recognition of the Mir and RuPay systems.
“This, of course, would contribute to a greater influx of Russian tourists to India, would help them navigate the country and purchase the services provided by our Indian friends,” he said, adding: “We hope that this and other issues will be resolved.”
Since the war in Ukraine, Western sanctions on Russian banks forced many visitors from the country to use cash for payments in India.
Similarly, Indians visiting Russia face a similar problem since international Mastercard and Visa cards do not work in the country, added the RT.
The linking of Russian and Indian payment systems can be achieved relatively quickly on a limited scale, Izvestia cited Alexey Kupriyanov, head of the Center of the Indo-Pacific Region of the Primakov National Research Institute of World Economy and International Relations, as saying.
“The next step is to pair SBP (Russia’s Faster Payments System) and UPI (India’s United Payments Interface), ideally to ensure that businesses can make mutual settlements through Mir and RuPay,” Kupriyanov told Izvestia.
Such a payment mode can also eliminate the need for intermediaries and reduce commissions on currency exchange by up to 30 per cent, analysts told the newspaper.
The report also mentioned that Russia and India have stepped up the use of the Rupee and Rouble for trade settlements, “with 90 per cent being made in national currencies”, according to the paper.
“India also pays for Russian oil in currencies of countries that have friendly relations with Moscow,” it added.
Meanwhile, United States President Doanld Trump had earlier stated that India will cut its reliance on Russian oil and that China will soon follow suit.
However, India’s External Affairs Ministry had neither denied, nor confirmed the statement. President Putin is expected to arrive in New Delhi next month, his first in the last four years, to participate in the annual India-Russia Summit.
The meeting is also likely to address defence ties, maritime partnerships, trade expansion and regional stability.
(IANS)
