RBI Imposed Restrictions on Transactions with Iran

The Reserve Bank of India (RBI) on 27 December 2010 imposed further restrictions on transactions with Iran. RBI mentioned that all current account transactions including trade deals with the west Asian country had to be settled outside the Asian Clearing Union (ACU). RBI had also specified in December 2010 that it would not facilitate payments for Iranian crude imports rendering a blow to Iran’s oil business. The world pressure is felt growing on Tehran over its nuclear programme. The RBI in the backdrop of difficulties being experienced by importers/exporters in payments to/receipts from Iran, decided that all eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism until further notice.

The ACU involves the central banks of India, Bangladesh, the Maldives, Myanmar, Iran, Pakistan, Bhutan, Nepal and Sri Lanka. United States has pressed hard for governments and companies to stop dealing with Tehran though United Nations sanctions do not forbid buying Iranian oil.