Cards based on Russia’s Mir payment system may soon be accepted at ATMs and the Point of Sale terminals in India as the two nations continue discussion to build a financial system which would not be affected by Western sanctions on Russia.
Russia is also likely to clear the way for acceptance of India's RuPay payment system.
The mutual acceptance of RuPay and Mir cards within the national payment infrastructures of the two nations will make it easier for visitors from Russia to India and vice versa to make payments using the cards without any hassle.
Visa and MasterCard exited the market in Russia in March this year after the United States and other Western nations tightened sanctions on the country in response to its military offensive against Ukraine. This made it difficult for Indian and Russian visitors to each others’ countries to make payment or draw money from the ATMs.
A source in New Delhi told DH that the mutual acceptance of Mir and RuPay cards for hassle-free use of the cards by Russian and Indian visitors in each other’s countries was among the issues discussed during recent engagements between the two nations, including during the visit of India's National Security Advisor Ajit Doval to Moscow on August 17 and 18.
During his visit, Doval had meetings with the and Secretary of the Security Council of Russia, Nikolai Patrushev. He also had a separate meeting with Deputy Prime Minister and Minister of Industry and Trade, Denis Manturov, and other officials of the Russian government.
The two sides are working on interaction of Unified Payments Interface (UPI) of National Payment Corporation of India and the Faster Payments System (FPS) of the Bank of Russia, the source told DH.
Turkey has already begun accepting Russia's Mir cards. It can also be used in 10 other nations, including Armenia, Belarus, Vietnam, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Venezuela. Apart from India, Russia is in talks with China, Egypt, Myanmar, Thailand, Bahrain, Azerbaijan and Cuba for acceptance of the card.
Russia established its National Payment Card System in July 2014 after the US imposed sanctions on it following its annexation of Crimea. The Mir card was launched in December 2015. Its use witnessed a sharp increase this year as the US and other western nations imposed tougher sanctions on Russia after President Vladimir Putin on February 24 ordered his soldiers to launch a military offensive in Ukraine.
India has drawn flak from the US and the other Western nations, not only for refusing to join them in strongly condemning Russia for its aggression against Ukraine, but also for continuing trade with it, circumventing sanctions. India also increased oil and coal imports from Russia.
India is purportedly paying for its imports from Russia in Indian Rupee, UAE’s Dirham and Chinese Yuan in order to bypass US sanctions.
India and Russia, according to sources, are discussing expanding use of national currencies for bilateral trade. They are also discussing within the BRICS – a bloc comprising Brazil, Russia, India, China and South Africa – the possibility of creating an international reserve currency based on the currencies of the five nations.