TEHRAN – Iran’s Bank Pasargad is going to open a branch in India in the next couple of months to help boost trade between the two countries by providing a channel to bypass the U.S. sanctions which have blocked international banking channels, Financial Express reported.

According to Iran’s Ambassador to India Ali Chegeni, Bank Pasargad has received all necessary approvals including from the Reserve Bank of India (RBI) to start commercial banking operations.

“It [Bank Pasargad] will start operations in 2-3 months,” he said on the sidelines of an industry event in India.

Back in July 2018, Indian Express reported that India approved a proposal from Iran’s Bank Pasargad to open a branch in Mumbai.

According to the report, the Federation of Indian Export Organizations (FIEO) had earlier approached RBI suggesting that they should allow the entry of Iranian banks into India to facilitate bilateral trade.

Meanwhile, sources said two banks from Iran, Bank Pasargad and Parsian Bank, had applied to set up branches in India, while another Iranian lender, Saman Bank, had sent an application to set up a representative office. 

The Indian government cleared only the Tehran Stock Exchange-listed Bank Pasargad’s proposal for a branch in Mumbai, while the other Iranian banks’ plans are yet to get the green light.

The presence of an Iranian bank in India will open up a significant financial channel that will ensure the smooth flow of funds between the two countries. India imports a large quantity of oil from Iran and has committed an investment of $500 million for the development of the crucial Chabahar port.

EF/MA