The BRICS rupee impasse no longer poses a problem, and Russian-Indian payments now flow smoothly through domestic currency transactions. The banking reform is being led by Sberbank India, which has solved the rupee conversion challenge, which actually dominated the headlines in 2022-2023, through automated processing systems and AI technology.
BRICS rupee arrears resolution facilitates faster payments for Russia and India
Replacing dollar dependence with payments in national currencies
Ivan Nosov, CEO of Sberbank’s India branch, told TASS in New Delhi on November 20 that the majority of trade between Russia and India is now done in national currencies. When it comes to payments, the bank has restored the familiar set of services for customers doing business with India, but now with faster speeds.
According to Nosov, thanks to process automation and the use of AI, it takes just a few minutes to send a payment from Russia to India via Sber. Changing Russian and Indian payments to rubles and rupees has removed the previous bottleneck that caused the BRICS rupee holdup issue that everyone was talking about.
Rupee exchange is now freely available
Nosov explained that the issue of rupee retention, which was discussed extensively in the media in 2022-2023, is now a thing of the past. As of this writing, this is no longer an issue as banks are free to exchange any amount of rupees.
Domestic currency transactions are now the most common method of settling bilateral trade between the two countries, with Sberbank India handling up to 70% of Russia’s exports to India. The BRICS rupee impasse shows how automated systems and AI technology have literally changed rupee exchange opportunities. Payments that used to take days or even weeks in Russia and India are now completed in minutes instead of hours in other cases.
This was a major milestone in the BRICS rupee impasse and had heightened alarm among traders and businesses operating between the two countries. The effective execution of domestic currency transactions shows how Sberbank India has developed alternative payment mechanisms that work effectively.
Western countries have imposed sanctions that prohibit transactions in US dollars and euros, but Russia and India can now easily initiate payments through these national currencies. Trade between Russia and India will nearly double to $65 billion in 2023, with India emerging as a major importer of Russian oil. This growth has been facilitated by the resolution of the BRICS rupee holdup issue, and rupee exchanges are now occurring without delay, similar to previous efforts to conduct bilateral trade in local currencies.
(Tag Translation)BRICS
