India to pay Iran $6.4 bn via European banks

The central banks of India and Iran have agreed to use European Banks to clear $6.4 billion oil payments to Tehran. Earlier, in 2011, buyers of Iranian oil were prevented from using global banking channels to clear their transactions after sanctions were imposed on Iran over its nuclear programme which ended in January.

As per Indian oil minister, Indian refiners have been holding 55% of its oil payments and due to previous sanctions they have been depositing 45% to Iran in rupees with India’s UCO Bank. But now according to Mr Pradhan there is an agreement between India and Iran’s central banks. European banks will be the clearing agent and we have to pay European banks. 

So now let’s discuss some questions related to this post :
1. India and Iran have agreed to clear oil bill payment via which bank ?
2. What is the amount for which India to pay Iran via European Bank ?

Courtesy : Business Today

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