Oil Payment Issue: Iran to accept part payment from India in Rupees
In a recent development over the Oil Payment issue, Iran agreed to accept 45% of the payments for its Crude Imports in Rupees via 3 Indian banks to bang the consequence of western sanctions.
Thus in spite of recurrent U.S. roadblocks and stress on European financial institutions via which India has been routing payments, both nations were resolute to settle the issue of payments for India's crude imports from Iran.
They agreed on part payment in Rupees and not Gold, as Gold was not an apt alternative.
As per the accord, 45% of the payment would be made in Rupees via 3 Indian banks and Iran may perhaps make use of this for purchasing Indian machinery, metal products, iron etc. Indian companies could also put in projects in Iran like building up its oil and gas fields, construction roads and railways and extraction of iron ore.