SBI is not known as the nodal bank for business with Russia
According to SBI, the RBI has granted permission to all Indian banks, including SBI, to open special Rupee Vostro accounts in order to boost rupee invoicing.
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State Bank of India (SBI), the largest lender to the public sector in the nation, indicated on September 15 that, contrary to news reports to the contrary, it has not been designated as the nodal bank for handling transactions pertaining to Russia.
SBI noted that the Reserve Bank of India (RBI) has given all Indian banks, including the SBI, permission to open Special Rupee Vostro accounts to encourage invoicing in Indian rupee. The RBI circular, dated July, was about creating additional arrangements for invoicing, payment, and settlement of exports and imports in rupees amid the Russia-Ukraine war situation.
"So, in accordance with RBI standards and our policies and processes, SBI is making the required preparations and processing requests received from various banks, including Russian institutions. SBI has not been designated as a nodal bank as a result "It made sense.
A system to settle payments for international trade in rupees, particularly for India's exports, has been announced by the RBI on July 11.
The RBI stated that the decision was made to encourage the growing interest of the international trading community in Indian rupees and to facilitate the expansion of global commerce with a focus on Indian exports. The Reserve Bank of India's Foreign Exchange Department must first give its prior clearance before authorised dealer (AD) banks can implement this method, the central bank noted.
It also addressed the possibility of market determination of the exchange rate between the currencies of the two trading partners.
In the meantime, the worldwide market selloff caused the Indian rupee to decline significantly against the raging US dollar. The rupee decreased 41 paise to 79.58 against the US dollar in early trade, according to PTI.
