Iran urges India to clear $6.5 billion oil dues in 2 months

Iran has urged India to pay up its $ 6.5 billion oil dues in two months, partly in rupees and the rest in dollars or euros.

"The payment will be in at least three installments. The modalities of installments and the route are being worked out," a top official said.

The dues on crude oil have increased as Western sanctions blocked payments since 2013. Around 45% of the oil import bill is paid in rupees, and the other half has accumulated.

The official said the repayment may happen through the Reserve Bank of India (RBI). Iran is expected to open a new account with one of the Indian banks to accept the payment. The country will use the rupee payments to settle bills for goods and commodities it imports from India.

The official said the new account will be different from the UCO Bank account which is a non-interest bearing account. "They want the payments to be made to an interest-bearing account", he said.

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