20 Indian banks open special rupee accounts for trade with Russia

Around 20 Indian banks have opened special rupee accounts to facilitate Indian companies’ trade with Russian counterparties, India’s Foreign Secretary Vikram Misri told a briefing devoted to results of Russian President Vladimir Putin’s visit to the republic and the 23rd Russian-Indian summit.

This refers to India Vostro accounts (foreign bank accounts held by a resident bank in local currency or the currency of a third country). “They have become a very effective mechanism for facilitating trade between the two countries. As for statistics, I think about 20 banks have opened a large number of Special Vostro Accounts that facilitate trade between the two countries,” he said.

The talks between the two countries’ leaders focused on economic issues, including trade, Misri noted. “Expanding trade and strengthening economic cooperation require a decisive reduction in tariff and non-tariff barriers,” he said.

The free trade area negotiations that have started between the Eurasian Economic Union (EAEU) and India, will also open up new opportunities, India’s Commerce Minister Piyush Goyal said at the Russian-Indian business forum attended by Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.

“The launch of negotiations on a free trade zone between the EAEU and India will further balance trade, strengthen the role of small and medium-sized enterprises, and open up new opportunities in various sectors,” he said and named manufacturing, agriculture, electronics, textiles, and pharmaceuticals among promising areas.