Fact Check: Is India exploring a rupee-rouble payment scheme to bypass war?

New Delhi, Apr 09: Speculations were that Indian authorities are actively considering rupee-rouble payment scheme, a dedicated mechanisms for trade with Russia in the wake of sanctions imposed on the Kremlin, a move that will also pave the way for cheaper oil imports to meet the country's energy demands.

However, a Central bank official has clarified that there is no new payment platform available between New Delhi and Moscow since the war erupted in late February.

RBI also mentioned that they are 'sensitive' to the sanctions imposed against Russia by western countries after the Kremlin's Ukraine invasion.

RBI Deputy Governor T Rabi Sankar responded to a question by saying, "There are press reports, but there is nothing that I am aware of. But let me reiterate that anything that we do will be sensitive to the sanctions," reported by PTI.

Any such payment mechanism involving rupee and rouble payments for imports and exports would help circumvent the sweeping economic sanctions imposed on Russia by the western nations, including freezing many key Kremlin officials' individual accounts and snapping Russian banks from the international payment gateway SWIFT.

Sankar further clarified that the central bank is not aware of any formal or informal rupee-rouble payment mechanism, saying industry groups, banks, and everyone concerned are trying to find out how best payments can be facilitated under these changed circumstances.

At present, the Reserve Bank of India is discussing all options.