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January 13, 2014updated 04 Apr 2017 12:59pm

India’s Uco Bank plans to expand Iranian banks accounts: Reports

India-based Uco Bank is, reportedly, planning to open accounts of more Iranian banks to drive bilateral trade payments between the two countries.

India-based Uco Bank is, reportedly, planning to open accounts of more Iranian banks to drive bilateral trade payments between the two countries.

Some of the Iranian banks that currently hold accounts with Uco are Parsian Bank, Bank Pasargad, EN Bank and Saman Bank.

Uco Bank chairman, Arun Kaul, was quoted by The Telegraph as saying that they have already opened accounts for six Iranian banks.

"Four more have approached us and we have sought the RBI’s approval for opening their accounts. So we will have accounts of 10 Iranian banks with us," Kaul added.

Kaul told the news daily that RBI approval was expected to come within a few weeks, following which the accounts would be created.

Following the ease of sanctions by the US on Iran, India and Iran entered into a bilateral trade of oil, where Indian refiners partly pay for Iranian crude oil in rupees in the accounts maintained by Uco Bank.

Additionally, Indian exporters are paid from the rupee deposits in those accounts for commodities such as rice, tea and pharmaceuticals that are imported by Iran.

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