India in no hurry to switch to ruble payments in trade with Russia

India is in no hurry to switch to settlements in rubles and rupees in trade with Russia, it will take some more time to complete the creation of a mechanism for direct payment of trade transactions between the two countries in the national currency. This was reported on Friday by The Economic Times, citing sources.

Work in this direction is not facilitated by the sharp volatility of the Russian currency and the unstable geopolitical situation, the newspaper notes. “Our traders see no urgency in accepting payments [from Russia] and are now allowing them to pile up,” sources said. “The Indian government is constantly focusing on setting up a local currency settlement system and is consulting with industry.”

It is convenient for Indian exporters to make payments through a government-supported mechanism. Previously, New Delhi used third-country banks for trade settlements with Iran, but now the Indian government is being cautious in the situation with anti-Russian sanctions, the sources said.

According to The Economic Times, the head of the Reserve Bank of India (RBI, central bank) Shaktikanta Das said last week that the regulator will not do anything that contradicts the sanctions imposed on Russia.