VTB Bank one of Russia’s leading banking institutions, is set to commence money transfer operations in Indian Rupees by the end of September. The bank will enable retail customers to transact funds directly with individuals and legal entities in India. The initiative seeks to facilitate smooth and convenient monetary transactions between the two nations.
VTB Bank has announced that it will set the maximum volume of one single transaction at 20 million roubles, equivalent to approximately $213,106. A commission charge of 1 per cent of the total transfer amount will be deducted for each transaction. However, given the convenience and swiftness of these transactions, clients will likely find this solution highly beneficial and competitive.
Russia’s top lenders, Sberbank (SBER.MM) and VTB, have said they are improving their ability to convert rupees into roubles, helping exporters to get funds effectively trapped in India due to Western sanctions.
Ravi Battula, Vice President of Merchant Acquiring Business, Wibmo, A PayU Company, said, “Russia, sitting on a large Indian balance of Indian rupees (thanks to the oil trade that India agreed with Russia to avoid the sanctions), is putting it to good use through VTB by allowing Russian consumers, traders, and corporates to send rupees to Indian banks to support the exports. This is a good start to integrating the two countries, which are good trading partners. This move will also pave the way for UPI integration for real-time cross-border payments in rupees bidirectionally.”
This move will serve to strengthen the financial and economic ties between Russia and India, stimulating business activities and investments between the two countries.
Navneet Gupta, Founder and CEO of YPay, said, “We are excited to announce the launch of cross-border money transfers to India through VTB Bank. This new service will provide customers with a convenient and efficient way to send money to their loved ones in India while expanding their global reach. We understand the importance of fast and secure international transactions, and this initiative is a testament to our commitment to meeting the customers’ evolving financial needs. With VTB Bank’s trusted reputation and advanced technology, customers can expect a seamless experience when transferring funds to India.”
This development follows similar actions by Russia’s largest bank, Sberbank, which recently announced (in June) its plans to enhance its capacity to convert rupees into roubles. This shared ambition signifies flexible currency conversion services.
“As we witness Russia’s VTB Bank taking a bold step towards enabling cross-border money transfers to India, we are reminded of the boundless possibilities that FinTech innovation holds. At BANKIT, we applaud this initiative as international remittance through possible options like Transfer to Card, Transfer in eRupee or voucher forms, and Transfer in mWallets can play a key role in opening doors to create more use cases for the users and FinTech players,” said Amit Nigam, Executive Director & COO at BANKIT.
Thus, the launch of rupee transactions by VTB Bank will foster easy and convenient banking solutions for their clients.