A new development appeared in the Russian banking market when deposits denominated in Indian rupees (INR) joined the list of available currencies, following several offerings in dirhams. The report from Kommersant notes this milestone in the evolving currency preferences among Russian financial institutions.
On April 19, the St. Petersburg Social Trade Bank, known by its acronym PSCB, introduced a time deposit in INR. The scheme targets corporate clients with a minimum deposit of INR 100,000 for companies and INR 10,000 for individuals. The deposit can run for up to 90 days, and it offers a fixed annual interest rate of 3 percent. This product marks a deliberate expansion of the bank’s foreign exchange and investment services beyond traditional ruble and foreign currency offerings.
The publication indicates that PSCB began engaging with the Indian currency in 2016 and became among the early adopters to establish a direct correspondent account in INR by 2022. Vladimir Pribytkin, who chairs the bank’s board, stressed that India maintains constructive ties with Russia and highlighted the growth in rupee-denominated trade as reflected in rising client activity. His remarks point to a broader strategy of leveraging India’s market dynamics to support cross-border commerce.
Pribytkin noted that as trade between Russia and India expands, Russian residents have accumulated INR holdings. Consequently, the bank does not view the new INR deposits as an immediately profitable marketing push but rather as a step toward encouraging longer-held balances in this currency. The emphasis is on building a stable base of rupee balances among customers rather than chasing short-term gains from new deposits.
In outlining who benefits from such an offering, the bank executive explained that a sizable customer base is necessary to sustain INR deposits. PSCB’s current clientele includes medium-sized enterprises involved in sectors such as pharmaceuticals and food, among others, which regularly engage in cross-border dealings with India and could find rupee-denominated products convenient for their operations and cash flow planning.
In the foreign exchange arena, the interlocutor underscored a crucial limitation: the Indian rupee is not freely convertible, which constrains lending in INR and shapes how such deposits can be utilized within the bank’s risk framework and regulatory environment. That point is essential for understanding the practical implications of rupee-based products for both customers and the bank itself. The note from market authorities indicated that withdrawal restrictions previously set by the central bank were extended until September 9, reflecting ongoing prudence in managing foreign currency liquidity and reserve norms during a period of evolving international trade ties.