New Delhi : Keen on strengthening ties with Iran, the government has allowed National Iranian Oil Company (NIOC) to buy office in Mumbai and is processing requests to allow three of its banks to open branches in the country.
With the lifting of international sanctions, major economies, including China and Korea are courting Iran, which has the world’s second-largest gas reserves after Russia.
Not to be left behind, India too is keen to raise its engagement with a nation which once was its second biggest oil supplier. Prime Minister Narendra Modi is likely to visit Tehran shortly to bolster ties. “Permission has been granted to NIOC for purchasing property for an office,” a finance ministry official said. Indian refiners are looking at nearly doubling buying of crude oil from Iran’s national oil company, NIOC to 20 million tonnes this year and it having a permanent office would help trade. Also, Iran has sought permission for three of its banks to open branches in India.
“Bank Pasargad and Parsian Bank want to open offices in India while Saman Bank is interested in opening a subsidiary,” the official said. “The Iranian request is being looked into by relevant authorities including the Reserve Bank of India.” The Finance Ministry had in 2012 declined permission to Parsian Bank to open a branch in India apparently due to security concerns and threat of money laundering.
The ministry decision then was based on a report from RBI. In that year, Home Ministry too had denied security clearance to applications by Parsian Bank and the other two banks fearing threat of money laundering and terror financing in banking transactions as cautioned by the Financial Action Task Force (FATF).
