Russians traveling to India will soon have access to a new cashless payment option, streamlining their financial transactions within the country. This initiative aims to ease payments for Russian tourists, students, and businesses, reducing the hurdles associated with cross-border money transfers.

The new system addresses the difficulties Russian tourists have faced using Visa and Mastercard in India, particularly due to sanctions imposed on Russia by the United States. The mobile app supporting this payment method is available on both iOS and Android platforms. To register, Russian tourists need their passports and valid Indian visas. Activation of the e-wallet requires an in-person meeting with a partner agent in India, which can be scheduled through the app. This service is available in major Indian cities, and users can top up their e-wallets via Sberbank Online.

This development is part of a broader effort by India and Russia to strengthen their economic ties and facilitate smoother trade transactions. One aspect of this is the promotion of Rupee-Rouble payments, which allow direct settlement in their respective national currencies, reducing reliance on intermediary currencies like the US dollar or the euro. This system involves businesses in both countries establishing bank accounts in each other's currencies. For instance, an Indian exporter might have a Rouble account with a Russian bank, and a Russian importer might have a Rupee account with an Indian bank.

Goods and services traded between the two countries can be priced in Rupees or Roubles, eliminating the need for conversion into a third currency. This reduces exchange rate risk and transaction costs. For example, an Indian company selling machinery to Russia can receive payment in Rupees directly deposited into their Indian bank account. Similarly, a Russian oil company selling oil to India can be paid in Roubles.

To further streamline Rupee trade settlements with Russia, the Reserve Bank of India (RBI) has taken steps to allow authorized banks to open special Rupee accounts. This move aims to enhance efficiency and mitigate risks associated with trade imbalances and currency volatility. The RBI is also exploring a dynamic Rupee-Rouble exchange mechanism to avoid costly dollar conversions. Other measures include establishing payment confirmation systems and exploring alternative financial messaging networks to replace SWIFT.

The integration of national payment systems is also under discussion between India and Russia. This could enable seamless cross-border card transactions, bypassing Visa and Mastercard. Financial institutions such as VTB and Sberbank already have a presence in India, further facilitating economic cooperation.

While the Unified Payments Interface (UPI) is not yet widely accepted in Russia, both countries are exploring the possibility of integrating UPI and Russia's Faster Payments System (FPS). Currently, a significant portion of trade between India and Russia is settled in national currencies.