IDBI received the nod to handle import-export transactions with Iran in early March, reported indiatimes.com on Sunday.
"IDBI Bank will shortly start setting up processing cells in Delhi, Ahmedabad and Kolkata. The bank already has a center in Mumbai. The Indo-Iranian trade settlements can be done at any of IDBI's branches and these three centers will be the processing units," a senior bank source said.
"Direct payments can be routed through the Iranian banks when a trader checks out with his IDBI Bank account number."
Although IDBI got the mandate to handle the Iran import-export settlements in first week of March, however, due to the delay in receiving funds into the Iranian "vostro" accounts, the bank could not operationalize the trade settlement mechanism. Now with the receipt of some funds, the process will start, the source added.
According to the mechanism agreed by the two countries, Iranian banks will open "vostro" accounts with IDBI Bank in India, and payments by Indian importers, including oil companies and exporters, will be deposited into these accounts in rupees.