Since February 2013 when US blocked payment channels,
India has been paying 45 per cent of its Iran oil bill in rupees through
a UCO Bank branch in Kolkata. For the rest, it has been waiting for a
payment channel.
As much as $4 billion has been
accumulated in past dues. A payment mechanism is now in place under
which $1.65 billion in three equal instalments of $550 million each will
be transferred to Iran via the UAE central bank, senior government and
industry officials said.
The money will be transferred to the RBI for onward credit to the central bank of United Arab Emirates. The UAE central bank will then make payments in dirhams to Iran. Officials
said the first two instalments may be paid this month and the third
$550 million tranche by July 20 deadline set by the US and five other
world powers for Iran to receive part of its past payments from its oil
buyers.
Read more at Hindu Business Line
Image from ArabianIndustry.com
