- Sber launched a rupee-denominated letter of credit for Indian purchases with deferred payment
- The bank settles payments to Indian suppliers immediately after receiving delivery documents
- Russian buyers can reimburse payments later, enhancing deal attractiveness and reducing risks
Sber, the Russia biggest lender, has launched a rupee-denominated letter of credit with deferred payment for purchases in India, a new financial product for importers.
The solution is unique in that Sber will settle payments with Indian suppliers in rupees immediately upon submission of supporting documents for the delivery of goods to the bank, while providing the Russian buyer with the option to reimburse the payment later when the deferral period ends, the bank said on Wednesday.
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The structure of the transaction using a letter of credit will reduce potential risks, while the use of deferred payment will increase the attractiveness of the deal terms for all participants, the statement said.
Sber's new tool will assist medium and large businesses in purchasing from both new and current Indian partners, it added.
"Thanks to Sberbank's branch in India, we can offer our clients products in rupees. We have been conducting pilot operations with deferred payment financing under letters of credit in Indian currency since the summer of 2025 and have confirmed the interest of our clients in this framework," Sberbank deputy chairman of the Executive Board Anatoly Popov said.
The bank can finance up to 100% of the cost of a shipment from India, with the interest rate for using the deferred payment being several points lower than the rate for a ruble loan, he said.
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