What happened
Gazprombank and Alfa‑Bank have officially submitted applications to the Reserve Bank of India to obtain licenses for opening branches in the country 🇮🇳. This is not a one‑off step but a continuation of an existing trend:
- VTB is already present in the Indian market and recently opened a new branch in Delhi.
- Sberbank has announced plans to build a network in around ten Indian cities.
- The Central Bank of Russia has opened its representative office in Mumbai, India’s financial capital.
In effect, we are seeing a gradual “build‑out” of banking infrastructure to match real trade and logistics flows, which in the last two years have shifted toward India and other countries of the Global South.
Why it matters
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Settlements in national currencies.
The more Russian banks are physically present in India, the easier it becomes to conduct settlements in rubles and rupees without relying on Western correspondent accounts and clearing systems. This reduces sanctions risks and makes payment timelines more predictable. -
Supporting new logistics routes.
India has become one of the key buyers of Russian oil and oil products, and exports of coal, fertilizers and metals are also growing. Any major flow of goods brings with it:- trade finance,
- letters of credit,
- insurance and risk hedging.
Without their own banks on the ground, companies have to work through intermediaries, which is slower and more expensive.
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Reducing dependence on Western infrastructure.
After 2022, access to dollar and euro payments for Russian counterparties became unpredictable. Having branches in friendly jurisdictions such as India allows alternative payment chains to be built that do not depend on SWIFT and Western banks. -
A signal to businesses and regulators.
For India, the arrival of new Russian banks means more competition, additional support for trade and a political signal that cooperation is long‑term. For Russian businesses, it shows that India is seen not as a temporary bypass route but as a fully‑fledged strategic market.
What comes next
Obtaining a license in India is not a fast process: the local regulator looks closely at compliance, financial stability and sanctions‑related risks. So the applications from Gazprombank and Alfa‑Bank are only the first step.
If the licenses are approved, we can expect:
- new products tailored to settlements in rubles and rupees;
- more active lending to projects linked to the North–South corridor and to sea shipments through Indian ports;
- stronger competition among Russian banks in foreign markets, which could improve conditions for exporters and importers.
In other words, Mumbai and Delhi are gradually turning into not only transport but also financial hubs for Russia–India trade. For now, banks are only building the “skeleton” of this system, but its robustness will largely determine how stable the new economic ties will be.