India mulls rupee account for Iran oil payments
With the UAE refusing to be India’s payment gateway for Iranian crude oil, New Delhi is working overtime to open a rupee account for the Iranians in the Reserve Bank of India.
“The finance ministry is working out the dos and don’ts of the rupee account…That is what this money can be used for by the Iranians and what it can’t. Once the contours are ready, the proposal would be brought before the Cabinet for approval,” said sources. They said the proposed norms would allow Iran to use the rupee to buy only non-strategic imports like railway projects or commodities. “It cannot be used for investing in India or in buying shares or companies here,” they added.
Until last week, India was hopeful of roping in the UAE as the payment conduit after Germany stopped last month accepting money from India for onward transfer to an Iranian-owned, Hamburg-based bank. But the hopes were dashed last week after Abu Dhabi informed the Indian ambassador that its hands were tied due to pressure from the US.
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