IDBI may also handle rupee transactions with Iran

IDBI may also handle rupee transactions with Iran

Agency News

Tehran, May 7 : India is considering IDBI Bank, besides UCO bank, for handling rupee transactions with Iran for faciliating trade, according to India's Ambassador to Iran Gaddam Dharmendra.
The Rupee payment mechanism between UCO Bank and Iran’s non-sanctioned banks have been in using the Vostro accounts for their trade purposes.
The ambassador pointed to preferential trade between the two countries is a priority in India's future plans for trade with Iran, adding that “Commodity exchange is a good idea that could help us bypassing the banking problems caused by sanctions against Iran.”
On May 2, the Trump administration announced that there would be no further extension of the waiver of the ban on Iranian oil imports by countries like India, China, Japan, Turkey and South Korea. The 180-day sanction wavers which started from November 4 last year ended on May 2.
Gholam-Hossein Shafei, head of Iran Chamber of Commerce, Industries, Mines and Agriculture, mentioned the long-term plans made by the two countries for boosting trade, and emphasized that new policies should be developed to facilitate such relations.
At a meeting on Sunday, Shafei called for cooperation between the transport and industry ministries of Iran and India to invest in Chabahar Port. He suggested holding regular meetings between the two countries’ businessmen in association with the two countries’ chambers of commerce and also the Indian Embassy in Tehran.
The Indian envoy also underlined talks with Iranian authorities for considering Shahid Beheshti Port in southeastern Iran as a path for developing trade relations between the two countries. “By doing so, we can boost the level of trade between the two countries. On the other hand, focusing more on Chabahar Port and the capacities available in this region can be helpful in this direction.”