Reserve Bank Deputy Governor HR Khan on Thursday said $700 million will be paid to Iran on the due date as part of oil dues without having any impact on the currency market.
“We have already cleared $700 million. Remaining $700 million has already been purchased and it will be paid on due date,” he said on the sidelines of National Financial Inclusion Conference.
“As of now $1,400 million has been cleared, $700 paid and $700 acquired. Its acquired, so there will be no impact in themarket,” he said. Khan, however, did not disclose the payment date and other details.
This will the second payment since Iran reached a historic nuclear deal with the US and other western powers. According to sources, the second tranche is scheduled to be paid on October 12. Essar Oil, Mangalore Refinery and Petrochemicals ltd, Indian Oil Corp and Hindustan Petroleum Corp had on September 30 paid the first tranche of $700 million to clear a chunk of the $6.5 billion they owe to Iran for past purchases. The refiners deposited rupee equivalent of $700 million in the Kolkata-based UCO Bank. UCO Bank purchased dollars for onward transmission to Iran. The remaining $4 bn will be cleared in tranches after payment channels.