Banks in India have pressed the panic button after bills for imports from Russia have started bouncing and payments for exports have been stuck in the wake of sanctions imposed by the west on Russia after its invasion of Ukraine.
The extent of the stalled payments is not clear so far and the Reserve Bank of India (RBI) is trying to assess it.
"Due to the various sanctions the payment settlements have halted and that's a concern for banks right now. This has been shared by lenders with the central bank and the industry body," Reuters has quoted a senior banking official.
The Reserve Bank of India has met with select bankers and is trying to assess the exposure that lenders have to Russia and to Ukraine and the impact it may have on Indian banks, the report quoted another senior banking executive.
The Indian Banks' Association, an industry body, also met with select bankers on Monday to determine the impact of trade disruptions.
