UCO Bank and Yes Bank have entered into a partnership with two Russian banks. Through this deal, both of these banks will get India closer to conducting business with Russia.
UCO Bank has partnered with Gazprom Bank, while Yes Bank has partnered with Russia’s Petersburg Social Commercial Bank (PSCB).
The country’s largest state-owned bank State Bank of India is also finding payment options with Russian banks.
The deal between Uco Bank and Gazprom Bank comes as the Reserve Bank of India implements a system to facilitate international payments through special Vostro accounts. In the absence of such standard procedures, overseas payments were made in Euros or other foreign currencies. These primarily occur through Gulf nations, whose exports from India have been harmed.
Why Indian Banks Partnering with Russian Banks?
Due to economic sanctions on Russia over attack on Ukraine, Indian exporters are finding commercial prospects and opportunities in Russia. Russia’s biggest exports include medicines, food products, textiles, and telecommunications equipment.