Iran, India Growing Banking Ties without Dollar: Diplomat

TEHRAN (Tasnim) – A top Indian diplomat at Tehran embassy unveiled plans for the expansion of trade and banking ties with Iran using the national currencies of the two sides instead of US dollar, saying six Iranian banks have been authorized to make investment in India.

Iran, India Growing Banking Ties without Dollar: Diplomat

Speaking at a press conference at India’s embassy in Tehran on Thursday, Deputy Head of India’s Mission to Iran Devesh Uttam hailed the expansion of economic relations between the two countries under the new agreements that facilitate business and investment.

According to the diplomat, a number of Iranian banks have made requests for new branches in India, saying the Pasargad Bank’s application is being processed in the final stages.

Moreover, an Indian bank has received permission from the Reserve Bank of India to invest in Iran with rupee, he added, noting that Indian companies can also begin to make rupee-based investment in Iran.

Pointing to the formation of joint committee overseeing the investment and trade mechanisms on the basis of national currencies of Iran and India, Uttam said six Iranian banks have been so far authorized to make investment in India under the same mechanism, which excludes dollar.

Iran and India have diversified economic cooperation in recent years, signing dozens of agreements to boost trade in various fields.

Last month, Iranian President Hassan Rouhani paid an official visit to India, during which the two countries signed 15 agreements in various fields, from an extradition treaty to cooperation in the development of Iran’s Chabahar port.

In December 2016, Iranian Foreign Minister Mohammad Javad Zarif announced plans for the opening of Indian government-owned bank UCO’s branch in Iran.

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