State Bank of India, the country's largest lender, continues to refuse processing payments for Russian oil imports despite receiving a temporary waiver from the US government. SBI remains cautious about engaging in transactions that could face renewed restrictions, according to sources familiar with the matter.

The US recently issued a temporary concession allowing India to maintain its Russian oil imports, bypassing typical sanctions requirements. However, temporary waiver has left Indian banks uncertain about how long this exception will remain valid, creating hesitation in processing critical energy payments.

This stance by India's top bank complicates the nation's efforts to secure discounted Russian oil while navigating complex international financial systems. The standoff suggests broader challenges in balancing economic needs with compliance concerns as global sanctions continue to reshape international trade relationships.