Iran, India to Start Rupee Payment Mechanism

India’s ambassador to Iran said that the financial mechanism between the two countries is prepared and the two sides will carry out their business and banking operations in the coming days on the basis of the exemptions received by the Indian government.

Also in the meeting, the two sides discussed facilitating banking affairs and the implementation of India’s investment in Southeastern Iranian port of Chabahar.

Kumar confirmed that the two countries’ banking mechanism has been created earlier, as both sides will do business in coming days, and added that Iran’s oil revenues are exempted from taxes which are commonly imposed on foreign accounts in Indian banks.

Earlier on last Monday, a senior Indian foreign ministry official Deepak Mittal lauded the important role played by port city of Chabahar in bringing about development for the regional countries.

“Chabahar port has a key role in development of economic and political relations among the regional states,” he said.

Mittal’s remarks came after the first meeting of the follow-up committee for the implementation of Chabahar Agreement between Iran, Afghanistan, and India was held in Chabahar attended by delegations from the three nations.

Chabahar Agreement was signed in June 2015 and was later approved by Iran’s Guardian Council in November 2016.

Chabahar is the closest and best access point of Iran to the Indian Ocean. In May 2016, Iran and India signed a deal to equip and operate containers and multi-purpose terminals at Shahid Beheshti port in Chabahar with the capital investment of $85.21 million and annual revenue expenditure of $ 22.95 million on a 10-year lease.