Iran refuses to sell oil to India on RBI's terms: report

Iran has rejected a proposal by the Reserve Bank of India on settlement of oil deals with Iran and has instead sought RBI guarantees on payments for oil sales to India, reports quoting sources said on Wednesday.

The National Iranian Oil Co (NIOC) is reported to have turned down Indian oil companies' request for payment outside the ACU as proposed by the RBI.

The Indian firms are reported to have suggested that Iran nominate a bank in Europe through which payments can be made, which the NIOC refused.

The RBI has proposed settlement of deals with Iran outside the Asian Clearing Union (ACU) system, which is generally used by central banks of member nations.

The ACU has the central banks of India, Bangladesh, Maldives, Myanmar, Iran, Pakistan, Bhutan, Nepal and Sri Lanka as members.

This has posed another obstacle for Indian entities to trade with Iran, which is already under Western pressure over its nuclear programme.

While there is no United Nations ban on buying oil from Iran, the United States is pressuring governments and
companies to stop dealing with Tehran.

Meanwhile, Iran's central bank is reported to have sought a meeting with the Reserve Bank of India.