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, a senior Russian official has said.
Indian Foreign Minister S. Jaishankar discussed the linking-up of Russia’s Mir and RuPay systems with Indian services when he met with Putin during his visit to Moscow earlier this month, Russian Deputy Foreign Minister Andrey Rudenko told Izvestia on Monday.
Since the imposition of Western sanctions on Russian banks, many visitors from the country are forced to use cash for payments in India. Indians visiting Russia also face a similar problem since international Mastercard and Visa cards do not work in the country.
Moscow is hopeful that the countries can agree on the mutual recognition of the Mir and RuPay systems, Rudenko told the newspaper.
”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. “We hope that this and other issues will be resolved.”
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 link-up would eliminate the need for intermediaries and reduce commissions on currency exchange by up to 30%, analysts told the paper. It would also enable Russians and Indians to make QR code and electronic wallet payments in each other’s countries, eliminating the need to even use credit cards.
Russia and India have stepped up the use of the rupee and ruble for trade settlements, with 90% 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.
