India bars three Iranian banks on security fears
The move complicates New Delhi’s efforts to settle
its iran oil bills:
INDIA: India's home ministry has refused to allow three Iranian banks
to open branches on Indian soil because of concerns about
money-laundering and terror financing, a report said on Friday.
The move complicates New Delhi's efforts to settle its oil trade
bills with the Islamic Republic, the Indian Express daily reported,
quoting an unnamed home ministry official for the report.
The ministry has denied security clearance to applications by Parsian
Bank, Bank Kasargad and Eghtesad-e-Novin Bank because of its obligation
to guard against money laundering and terrorist financing, the newspaper
said.
There was no immediate comment from the home ministry.
Fuel-scarce India plans to import 15.5 million tonnes of crude oil
from Iran this year.
It has faced difficulty in finding banks to transfer payments to Iran
due to US-led financial sanctions against the Islamic republic that have
dried up dollar payment routes.
To help circumvent this, India and Iran clinched a deal under which
New Delhi would pay for close to half of its Iranian oil purchases in
rupees.
Allowing branches of Iranian banks to set up in India would made it
easier for Indian firms to boost rice, tea, yarn, fertiliser and textile
exports to Iran as well as facilitate cooperation on engineering and
other projects.
Iran will use the rupees it receives for oil to buy Indian goods.
Large delegations from each country have already made visits to explore
trade opportunities.
Transactions are now routed in euro payments through Turkiye Halk
Bankasi and 45 percent of crude payments in rupees through India's
state-run UCO Bank.
India's Department of Economic Affairs plans to ask the home ministry
to reconsider its decision, citing “strategic compulsion” for the
opening of the Iranian bank branches, the newspaper said.
Iran is also looking to India for transfer of technology to modernise
its textile industry and investments in a railway corridor to connect
Iran to Caspian Sea countries.
India, which imports four-fifths of its crude, says it shares the US
anti-nuclear proliferation goals. But it also views Iran as an important
source of oil to feed its economy's fast-growing needs and sees Iran as
a key ally in stabilising Afghanistan following the US planned troop
exit.
AFP
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