ENS cited Mr Seyyed Abbas Araghchi Iran’s Deputy Minister for Asia, Oceania and Commonwealth as saying that India and Iran are working on finding a solution to the problem of making payments in rupees for oil purchase.

Mr Abbas Araghchi said that "The Indian government has made a payment of INR 1 billion for purchase of oil but since Indian banks have refused to part with their money and no Iranian bank has its branch here we are working on a mechanism to deal with the situation."

Under the rupee payment mechanism, 45% of the payments made by Indian oil companies for their imports from Iran were credited in rupees in the accounts of Iranian banks maintained with UCO Bank.

The visiting Minister also said that the Iran, Pakistan and India gas pipeline project was ongoing and would be open to use for all countries in the region.

Source - Exim News Service

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