According to reports, the State Bank of India, the country’s largest bank, has halted processing transactions involving Russian firms sanctioned by the West over Russia’s attack on Ukraine.
SBI has issued a circular to accomplish this since it is concerned that any transaction with organizations or sectors that are sanctioned may result in sanctions being imposed on it as well, according to sources.
They stated that no transactions involving businesses, institutions, ports, or boats listed on the US, European Union, or United Nations sanction list will be handled, regardless of the transaction’s currency.
According to sources, payments payable to such businesses must be processed through a different system than the banking channel. Commercial Indo Bank Llc, a joint venture between SBI and Canara Bank, is headquartered in Moscow and has 40% ownership. The bank has yet to reply to an emailed request for comment on the situation.
On Thursday, the war between Russia and Ukraine began its eighth day, with combat growing in Kyiv and other towns. Last week, the G-7 major economies put sanctions on Russia’s central bank. They also removed Russia from the SWIFT payment system.
India has taken a neutral stance in the aftermath of Russia’s attack on Ukraine, urging both nations to resolve the conflict peacefully. As it abstained from a UN General Assembly vote condemning Russian aggression against Ukraine, India sought “safe and uninterrupted” transit for all of its citizens, including students currently stuck in Ukraine and combat zones.