Indian banks avoid Russia entities on West blacklist
THE GOVERNMENT and Reserve Bank of India (RBI) are yet to issue formal guidance on banking transactions involving Russian lenders in the wake of Western sanctions triggered by the Ukraine war but trade and industry are increasingly complaining about blockages in funds transfers and credits during routine transactions between Indian and Russian banks.
With the US and European nations blocking major Russian financial institutions from SWIFT, those entities on the sanctions list are unable to receive confirmations for fund transactions executed through the globally accepted messaging network.
But even transactions routed through Russian entities outside the SWIFT sanctions list, including that country’s largest lender Sberbank and Gazprombank, to accounts in some Indian banks are facing the effect of restrictions, The Indian Express has learnt.
This has made the execution of financial dealings involving Russian banks difficult from…