Money & Banking

Iran trade: UCO Bank assures all help to exporters

LN Revathy Coimbatore | Updated on July 11, 2019 Published on July 11, 2019

File photo   -  Reuters

The bank has increased the number of such designated branches (for doing business with Iran) from 22 to 67

UCO Bank is making all efforts to ensure that exporters who do business with Iran can approach its designated branches for help.

The bank has increased the number of such designated branches (for doing business with Iran) from 22 to 67. It is now contemplating to set up an apex processing centre across its branch network (comprising 3,000+ branches) to help exporters. “This could take another six-seven months,” a top bank official said.

On the sidelines of an exporters’ meet organised jointly by the Federation of Indian Export Organisations (FIEO) and UCO Bank, UCO Bank Managing Director Atul Kumar Goel said the bank would need to train its personnel both at the branch and treasury levels on procedural compliance for doing business with Iran.

Discussing the present trends in the global trade, banking-related issues of exporters, and facilitation initiatives taken by the government, Goel said: “The government is giving a thrust to export finance. UCO Bank facilitates and promotes export finance. As many as 14 Iranian banks have opened Indian Rupee Vostro Account with UCO Bank.”

Explaining the significance of Iranian banks opening account with UCO Bank in India, he said: “Whenever we import oil, the money is paid by the oil companies in India and credited to this account. That bank will send this Indian rupee to the bank in Iran and the payment to the exporter will be made in Iranian rial.”

“All payments are in Indian currency and no foreign currency is involved. UCO Bank acts as an agent of the Iranian Bank while making the payment,” Goel said, and pointed out that around ₹1,000 crore was stuck between January 16, 2016 and May 4, 2018 due to secondary sanctions.

Goel said export opportunities to Iran are huge. Credit is extended at competitive rates and will not be a constraint for exports, he added.

Published on July 11, 2019
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