Russia‘s Petersburg Social Commercial Bank (PSCB) and Yes Bank have taken the forefront in allowing rupee-rouble bilateral trade that aims to bypass the US currency, assuring ongoing cross-border business with Moscow companies in the midst of Western sanctions.

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However, PSCB is not on the list of sanctioned banks. The Russian lender, which probably dodged the West’s attention due to its minor presence in Europe’s wealthier neighbours and other developed nations, has registered a rupee account with almost three dozen Russian businesses to settle payments for trades with India.

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“We have opened a rupee-rouble account with Yes Bank,” Vladimir L Pribytkin, PSCB’s founder and chairman, told Economic Times.

“We are currently transacting through it as we settle payments in rupees-roubles on behalf of our nearly three dozen Russian clients engaged in trades with India,” he added.

LLC Mettem-M, LLC Armtel, and LLC NKP Farmindustry are among the PSCB’s clientele. The bank primarily works with enterprises involved in bilateral Indian trade in pharmaceutical ingredients, fruits, and spices.

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In the backdrop of the Russia-Ukraine war, the Russian bank may be the first in recent months to open a rupee account with an Indian lender.

Meanwhile, the Reserve Bank of India (RBI) is expected to publish a FAQ on standard operational processes for rupee accounts, according to Economic Times.

After the central bank issues its FAQ clarification, the rupee account is expected to be turned into a special rupee account.

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Other Russian lenders, such as MFK Bank have submitted three to four additional applications to Yes Bank and according to Economic Times, Indian lenders have received about two dozen similar applications, the majority of which are now with the central bank for clearance.

The Indian Banks’ Association (IBA) is facilitating the entire process, with Russia-India trade serving as the focal point for such customised accounts.