India will settle oil contracts with Iran in rupee using a bank in the Gulf nation post November 4 when the US sanctions would freeze all payment channels using international currency.
Sources privy to the development told FC Iranian Bank Pasargad could become the channel for rupee/rial dealings in the oil trade between the two countries later this month when the real picture emerges about the scale of disruption in oil supplies from the Gulf country.
The Reserve Bank of India (RBI) has given its nod to Pasargad to set up a branch in Mumbai. Indian oil companies would use this branch to deposit their payment for oil imported from Iran in rupee.
Also, an earlier rupee payment window opened with UCO Bank or IDBI Bank may be utilised again for making payments for Iranian oil post sanctions. Read More
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