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Iran opens bank in India

Tehran: To strengthen the commercial ties between New Delhi and Tehran. India has decided to allow the Pasargan Bank and Parsian Bank of Iran to set up branches in New Delhi and Mumbai.

The decision was taken by the India-Iran Joint Commission after the meeting led by External Affairs Minister Sushma Swaraj and Iranian Finance Minister Ali Tayebnia.

K.L. Malhotra, convenor of the Indo-Iran Economic Cooperation Council said. “A major beneficiary of normalisation of banking channels between two sides will be India which has just begun settling more than $6.5 billion energy-related pending payment, with Iran. Currently both Pasargan and Parsian conduct their transactions through the UCO bank of India.”

The Indo-Iran Economic Cooperation Council which was launched by Dr. Tayebnia during his visit. When the western powers and U.S. blocked payment channels to increase pressure on Iran, in 2011. The Reserve Bank of India created a channel for payment via Turkey.

Both the countries worked to boost logistic services, including allowing freight forwarding companies for the rupee payment mechanism and the insurance cover that are currently available only to exporters and importers.

Samir Shah, Chairman, Federation of Freight Forwarders’ Associations in India, said.As freight forwarders are forced to route cargo meant for Iran through Dubai and China and Russia.

India and Iran have decided to cut the duties on certain products which were mutually agreed to increase bilateral trade. A Joint Working Group will hold meetings to look at the feasibility of the PTA. Iran has been exporting its crude which has high sulphur content to Indian refineries since past few months.

Sources said India-Iran trade will come after signing of the contract to develop the Chabahar port, which is in its “final stages of negotiation”.