Русский
A top executive at Russia’s largest bank has said he sees a growing role for the Indian rupee in the country. Aleksandr Vedyakhin, the first deputy chairman of the board of Sber, has stated that the Indian currency is popular with the bank’s individual and business clients. He said, “In Russia, Sber allows you to make transactions in rupees, which is something a lot of our Indian staff do. But beyond that, you can also open a rupee deposit or carry out other operations, just like you would with any other foreign currency.”
Vedyakhin added that the bank was “deliberately opening up space for the rupee” because it saw the currency as a “strong tool for savings inside Russia.” He said that a significant share of payments between Russia and India goes through Sber, with many such payments being made in national currencies.
He emphasized that already more than 90% of trade between the countries is conducted in their national currencies, with payments between countries taking place within two hours—just as quickly as within Russia. “Commissions on the rupee have fallen significantly, which is directly beneficial for customers,” he added. Sberbank processes payments for up to 70% of all Russian exports to India.
Vedyakhin also noted that Sber’s business in India, which started in 2010, is actively expanding. “India is a very friendly market for Russia,” Vedyakhin said, adding that he found the people of Delhi and Mumbai to be “incredibly positive” during a recent visit. “It’s a great thing that we are welcome in India; they want us there,” he added. “Our business with India is going well.”
Sber has offices in Delhi and Mumbai, as well as an IT center in Bengaluru, with plans to hire 300 IT personnel.
Vedyakhin said that Moscow was now satisfied that the issue of what to do with an excess amount of rupees had been resolved. “There is now a stable high demand for rupees, and rupee transactions are flowing smoothly,” he said. “Commissions on rupee payments have dropped significantly, which also directly benefits our clients.”
In addition to its existing range of hedging tools, including forwards and options, Sber is expanding its product lineup, which now features rupee-denominated loans for Russian businesses at interest rates substantially lower than those available in Russia.
Further Reading
Russia and India Looking at Benchmark Ruble-Rupee Rate to Increase Bilateral Trade
