Iran has asked India to pay within two months $6.5 billion in past oil dues, partly in rupees and rest in dollars or euros, a top official said.
“The payment will be in at least three installments. The modalities of installments and the route are being worked out,” he said.
The dues to Iran on crude oil that refiners buy have accumulated as Western sanctions blocked payment routes since 2013. About 45% of the oil import bill is paid in rupees in a Uco Bank branch and the rest has accumulated.
The official said the payment to Iran can be either through Reserve Bank of India (RBI) – in that case refiners will hand over the money to the central bank which will then do the onward transmission to Iran, or through a gateway notified by the government. Iran will open a new account with one of the Indian banks for receipt of the rupee payment.
“They want the payments to be made to an interest-bearing account.”
