India and Russia have recently agreed to explore the possibility of accepting each other’s payment cards, RuPay and Mir, to facilitate cross-border transactions. This move was made during the latest meeting of the Internal Governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC), which was jointly chaired by External Affairs Minister of India, S Jaishankar, and Russia’s Deputy Prime Minister, Denis Manturov.
Facilitating Cross-Border Transactions
The acceptance of RuPay and Mir cards by both countries will allow citizens to carry out cross-border transactions in their respective currencies, which are the Indian rupee and Russian ruble. This is a significant move that is aimed at easing payment methods between the two countries, which is vital for trade, economic and cultural cooperation.
Exploring Alternative Payment Options
Currently, payments between India and Russia are made through the SWIFT network. However, the participants at the IRIGC-TEC meeting also discussed the possibility of adopting Russia’s Services Bureau of Financial Messaging System of the Bank of Russia as an alternative to SWIFT for cross-border payments. This is aimed at minimizing the impact of sanctions imposed on Russia by the West.
Linkage Between UPI and PayNow
In addition to the adoption of payment cards, the meeting also discussed the recent launch of cross-border connectivity between India’s Unified Payments Interface (UPI) and Singapore’s PayNow. This connection enables people in both countries to undertake faster and cost-efficient digital transfers, benefiting the Indian diaspora in Singapore, including migrant workers and students.
Most Popular Payment Mode
UPI has become the most popular payment mode for person-to-person and person-to-merchant transactions in India, accounting for 75% of total digital payments. It was launched in 2016, and the volume and value of UPI transactions have increased manifold. The National Payments Corporation of India (NPCI) established a resilient payment and settlement infrastructure in India since its inception in 2008. It enables transactions through a range of retail payment products such as RuPay card, Immediate Payment Service (IMPS), UPI, Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag), and Bharat BillPay.
Conclusion
The adoption of payment cards, exploration of alternative payment options, and linkage between UPI and PayNow are significant steps towards facilitating cross-border transactions between India and Russia. These moves will improve the payment options for both countries and promote trade, economic and cultural cooperation.
