Russia and India are intensifying negotiations on the mutual recognition of the MIR and RuPay payment systems and the issue will be on the agenda for the India-Russia annual summit, ET has learnt. Talks are also on to integrate instant payment systems the Russian SBP (service that allows individuals to make interbank transfers using a mobile phone number) and the Indian UPI, it has been further learnt.
Russian President Vladimir Putin and External Affairs Minister S Jaishankar discussed the joint recognition of the MIR and RuPay payment systems when the latter called on the Russian leader in Moscow last week, according to Russian Deputy Foreign Minister Andrei Rudenko. The Deputy FM who participated in that meeting in the Kremlin told Russian media Izvestia.
Putin and Modi will discuss the issue of cross-border payments at next week’s Summit here, it has been learnt. The two sides have already increased mutual settlements in national currencies to 90% and travellers from each side to each other’s country will benefit if Russian Mir and Rupay payment systems are put in place, according to experts on India-Russia affairs.
The decision on integration is partly driven by Western sanctions against Russia’s banking system. By linking RuPay and MIR, it could allow for payments using Indian Rupees and Russian Rubles in the respective countries. This would provide relief to Russian tourists and businesses and vice-versa and help smooth out transactions between the two countries, according to another expert.
MIR is Russia’s national card payment system, operated by the Central Bank of Russia. It is designed to function like Visa and Mastercard and is widely accepted in Russia. It provides payment products used by financial institutions to offer credit, debit, or other programs to their customers.