The trade minister said India owes about $8.8 billion for oil imports from Iran as economic sanctions imposed over Tehran`s nuclear programme have cut its access to the global banking system.

New Delhi refiners settle 45 percent of Iranian oil payments by depositing rupees in Tehran`s commercial banks` account with UCO Bank, and withhold the remaining 55 percent. Iran taps funds in the rupee account to import goods from India. The balance in Iranian commercial banks` accounts with UCO Bank was 178.955 billion rupees ($2.86 billion) as of March 16 while refiners owed Tehran USD 5.943 billion as on Feb. 28, Nirmala Sitharaman told lawmakers in a written reply on Friday.

Sitharaman said, “The Ministry of Finance has decided that payments to the extent of USD 100 million per month for such third-country exports to Iran would be allowed from the 45 percent rupees vostro account held with the UCO Bank.”

Source:customstoday.com.pk