SBI says it’s not a nodal bank for Russia-related transactions

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State Bank of India (SBI), India’s largest lender, on Thursday clarified that it has not been identified as a nodal bank for handling Russia-related transactions.

The clarification by the bank came in response to reports in certain sections of media that it had been identified as nodal bank for looking after Russia-related transactions.

“Concerning the news published by the media today about SBI being identified as the nodal bank for handling Russia-related transactions, SBI would like to clarify that RBI through its circular on July 11, 2022, has authorised all the banks in India, including the State Bank of India, to open Special Rupee Vostro account to promote invoicing in Indian Rupee. Accordingly, SBI is making necessary arrangements and processing requests received from various banks, including Russian banks, duly following RBI guidelines and our policies and procedures. SBI, as such, has not been identified as a nodal bank,” the statement by SBI read.

Federation of Indian Export Organisations (FIEO) president A Shaktivel told reporters on Wednesday that India will soon start settling trade with Russia in rupees as the State Bank of India has agreed to facilitate the process.

“So the SBI is already identified here…We have a good rupee payment mechanism in Iran, so same thing will happen (with Russia)…SBI is a huge bank to cater the need of exporters,” he was quoted as saying.

The Reserve Bank of India (RBI) in July issued a detailed circular asking banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

Source: Economic Times

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