Russians to get cashless payment option in India

Sherbank, Russia's biggest bank, has entered into a partnership with the Indian credit management app Cheq, which will allow Russian tourists to make cashless payments in India, said a statement by the state-owned lender.

The development marks a significant step to boost Russia's economic links with India in the mobile banking sector, according to analysts.

The mobile app is available for both iOS and Android operating systems. Registration is required with a passport and a valid Indian visa for Russian tourists, according to the bank.

"To activate the wallet, a Russian tourist must meet with a partner agent in India, scheduling an appointment through the app. The service is available in all major Indian cities. After activation, the e-wallet can be topped up through Sberbank Online," said the statement.

Russian tourists have been unable to use Visa and Mastercard cards abroad ever since sanctions were imposed on Russia's banking sector following the start of the Ukraine war, and it is a challenge to carry large sums of cash while travelling, said the analysts.

"Cashless transfers between Russia and India are our priority, as relations between the two countries are currently developing very dynamically: economic ties, tourism, and migration flows are growing," said Anatoly Popov, deputy chairman of Sherbank's management board. "Indian labour migrants can already transfer money from Russia to their home country using their account numbers, and Indian students can pay tuition fees at Russian universities. Now we have taken another step and offered Russian tourists a solution for cashless payments in India. We have chosen QR code payment, which is widely used in India, and have restored the cashless payments that Russians are accustomed to, even abroad."

Bengaluru-based digital payments firm Cheq is one of the entities which operates under UPI OneWorld, a product built by the National Payments Corporation of India (NPCI). This feature allows foreign tourists without Indian bank accounts to undertake Unified Payments Interface (UPI) payments in India, by using a prepaid wallet provided by companies like Cheq. They just need to complete the KYC (know your customer) process with their passport and visa documents, after which their payments get enabled.

Pine Labs, Transcorp, IDFC First Bank and Trio (previously FamPay) are some of the other entities which are licensed by the NPCI to offer this feature.

With Cheq entering into a partnership with Russia's largest lender, Russian tourists who have a Sberbank account can use their bank's net and mobile banking platforms to load funds directly onto the Cheq UPI wallet and then subsequently use it to pay via QR codes. This will help them avoid card rails, where Russia has faced sanctions from the United States.