- India and Russia are exploring ways to link their payment systems to create new payment avenues that could circumvent financial sanctions levied against Moscow.
- The officials agreed to integrate India’s Unified Payment Interface (UPI) and Russia’s Faster Payments Systems (FPS) and to look into adopting the Financial Messaging System of the Bank of Russia for cross-border payments.
India’s External Affairs Minister S Jaishankar and Russia’s Deputy Prime Minister Denis Manturov are reportedly exploring ways to integrate their countries’ payment systems as they seek to create new payment avenues that can circumvent financial sanctions imposed against Russia.
According to the Economic Times, Jaishankar and Manturov agreed to integrate India’s Unified Payment Interface (UPI) and Russia’s Faster Payments Systems (FPS) to establish a more secure financial system. UPI is a mobile payment method that enables users to make real-time transfers, while FPS is a service that allows users to transfer funds between banks using their mobile number.
The two officials also agreed to adopt the Financial Messaging System of the Bank of Russia for cross-border payments to move away from the global interbank platform SWIFT. This move is in line with BRICS’ efforts to create a new global currency that does not rely on the US dollar. BRICS is an economic alliance that comprises Brazil, Russia, India, China, and South Africa.
Negotiations about the details of the new currency are underway, and the alliance may reach an agreement by the end of the year, according to Anatoly Aksakov, Russia’s Chairman of the State Duma Committee on the Financial Market.
The integration of India’s UPI and Russia’s FPS payment systems could provide a safer and more secure financial ecosystem for both countries, enabling them to carry out cross-border transactions with ease. Furthermore, the adoption of the Financial Messaging System of the Bank of Russia for cross-border payments will ensure that both countries’ financial systems remain independent of SWIFT, thus avoiding the risk of being subjected to the US-led sanctions.