Govt eyes rupee payment mechanism with Russia to curb widening CAD

Move is part of efforts to curb widening current account deficit

India is mulling a rupee payment mechanism with Russia as part of a broad range of measures aimed at reducing the current account deficit (CAD). 

Trade deficit has widened to more than $80 billion in the first five months of the current financial year as the value of the rupee nosedived and global crude prices continue to shoot up.

The potential mechanism will allow Indian importers to pay for imports from Russia – mostly diamonds and petroleum – in Indian currency while Russia would be able to use those rupees to pay for its own imports. India had a similar