India Banks Refusing to Settle Russian Oil Bills Above Price Cap

Indian banks have told authorities they won’t process payments for oil priced above the cap set by the G-7, according to people with knowledge of the matter, a challenge for the world’s most populous nation that is counting on cheap crude to keep inflation in check.

Large state-backed lenders have conveyed their discomfort to the Reserve Bank of India and government and are asking refiners to provide proof that they are meeting the $60-a-barrel limit, the people said, asking not to be identified as the communications are private. The banks are wary of attracting international sanctions, the people added.

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