Iran seeks permission to open multiple bank accounts in India

Iran has requested the Ministry of Finance and the Reserve Bank of India (RBI) to allow it to open accounts in multiple banks to facilitate better non-oil trade between the two nations.
As per Iran’s Ambassador Gholam Reza Ansari, Iran is looking at diversifying its economic relations with India through joint ventures, investments and technology transfer. It wants to strengthen relations with India by having multiple bank accounts to boost non-oil trade.

• For this, it has a proposal to build north-south rail corridor in Iran which would boost trade in the region.
• The UCO Bank account is for oil transactions and there is a need for multiple channels, as the trade relations between the two nations extend beyond oil.
• For all oil imports from Iran since July 2011, India has been paying 55 % of the amount in Euros through Ankara-based Halkbank. The remaining money is being remitted in rupees in Kolkata-based UCO Bank.

Note: Presently, only UCO Bank facilitates oil related transactions with Iran.

Month: Current Affairs - January, 2014