Indian banks refused to connect to the financial message transmission system (SPFS – Ed.), which is called the Russian counterpart SWIFT. It is reported by Economic Times with reference to sources.
According to an unnamed top manager of the Indian bank, the Russian side proposed combining the SPFS and the Indian system of interbank payments (SFMS) to make payments in rubles and rupees. However, Indian bankers did not like the idea. They are afraid that due to the unification of the banks of India can fall under the secondary sanctions of the United States.
Washington can regard this as a violation of sanctions. A number of Indian banks turned to the National Central Bank to get permission to open accounts where they can pay in rubles and rupees, but the regulator has not yet answered.