After the attack on Ukraine, many types of economic sanctions have been imposed on Russia in Western countries. There has been no formal advice from India regarding transactions with Russian banks. However, many companies are constantly complaining that they are facing problems during the route transactions. Transactional activities between banks in Russia and India have been disrupted.
The US and European countries have taken many of Russia’s economic institutions out of SWIFT service. It is a global banking messaging service. Due to this also there is a problem in the transaction. According to a report published in The Indian Express, transactions are not being done in India’s banks even from Russia’s largest bank outside SWIFT.
A senior banker said, the regulatory authority has not issued any guidelines. Right now banks are taking precautions on their own and doing less transactions with banks banned by US, EU. He said that discussions are also going on on alternative arrangements for the transaction.
Some banking sources say that the sanctions on Russian banks are not yet fully implemented. Banks are also not clear about some transactions whether they should accept these restrictions or not.