Overview
- N Senthil Kumar of the Reserve Bank of India said the central bank is developing options for Russian counterparts to settle imports or make capital investments using rupees held in India.
- He did not disclose specific measures or the size of Russia’s rupee holdings, noting only that work is underway.
- India already permits limited deployment of these funds, including investments in government securities approved last year and restricted access to local equities.
- Kumar cited market inertia and the need to build trust among exporters and importers, urging more INR–rouble transactions to deepen the market.
- Russia’s rupee balances swelled after discounted oil sales to India, and purchases by Indian refiners have recently picked up following a temporary U.S. allowance to increase imports.