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Exclusive: Indian refiners pay for Iranian oil in rupees - UCO Bank executive

Reuters  |  NEW DELHI 

By Nidhi Verma

(Reuters) - has begun paying for in rupees, a said on Tuesday, the first such payments since the imposed new sanctions against in November.

gave a six-month waiver to eight countries, including India, allowing them to import some Iranian

India, the world's third biggest importer, wants to continue buying oil from as it offers free shipping and an extended credit period, while will use the rupee funds to mostly pay for imports from

"Today we received a good amount from some oil companies," Charan Singh, at state-owned told He did not disclose the names of refiners or how much had been deposited.

recently issued a notification exempting payments to the (NIOC) for from steep withholding taxes, enabling refiners to clear an estimated $1.5 billion in dues.

An industry source said India's top refiner and have made payments for Iranian Neither was immediately available for comment.

Iran is devising payment mechanisms including barter with trading partners like India, and following a delay in the setting up of a European Union-led special purpose vehicle to facilitate trade with Tehran, its said earlier on Tuesday.

In the previous round of U.S. sanctions, settled 45 percent of in rupees and the remainder in euros but this time it has signed deal with Iran to make all payments in rupees as wants to fix its trade balance with

Indian imports from Iran totalled about $11 billion between April and November, with for about 90 percent.

Singh said Indian refiners had previously made payments to 15 banks, but they will now be making deposits into the accounts of only 9 Iranian lenders as one had since closed and the U.S has imposed secondary sanctions on five others.

The nine banks are Saman Bank Corp., Bank Pasargad, Bank Eghtesad Novin, Karafarin Bank, Bank Samayeh, Middle East Bank, City Bank, Bank Hekmat Iranian, and

(Reporting by Nidhi Verma; Editing by and Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 23:37 IST