MUMBAI: Despite increasing tension between the US and Iran, Indian exporters doing business with the Middle East Country may not face any problem in receiving their payments in the Indian currency till this fiscal-end. The Uco Bank currently has enough “availability of funds” in its rupee accounts, which had been opened to facilitate Indo-Iran bilateral trade settlements, to make payments “at least for sometime” to the exporters for shipping products to the West Asian nation, according to a senior bank official.

When asked whether Indian exporters will have any problem in getting their payments in the rupee under the “Rupee Payment Mechanism”, the Uco Bank official said: “It depends on the availability of funds. But, at least I don’t think there is any immediate problem for making payments.”

India and Iran had signed a deal in the last year for oil import payments in rupees. The MoU was signed as the US had allowed India and seven other nations to keep buying Iranian oil despite sanctions were reimposed on the Islamic state in November, 2018. According to the agreement, Indian oil companies made rupee payments in Uco Bank accounts, and 50% of those funds were earmarked for making the payments for the exports from India to Iran.

Uco Bank has been facilitating the bi-lateral banking trade transactions with Iran under the “Rupee Payment Mechanism” since February, 2012, as mandated by the Government and RBI.