India’s Rupee Investment Extended to Banks

An Indian bank has received the authorization of the Reserve Bank of India–the country’ central banking institution–to invest in Iran in rupees as part of the initiative by the Asian superpower to strengthen economic ties with Iran.
According to India’s Deputy Chief of Mission in Tehran Devesh Uttam, six Iranian banks have also received the permission to invest in India with Indian companies enjoying the freedom to invest in Iran in rupees.
“Indian attaches lots of importance to relations with Iran and there is great potential for bilateral economic relations between the two countries,” Uttam was quoted as saying by Fars News Agency. 
India announced in February that  for the first time beyond Bhutan and Nepal, it would in invest in a foreign country—Iran—through its own national currency rupee to bypass any trouble arising out of impending US primary sanctions against Iran, which bars the country from dealing in dollars. 
The announcement was made as President Hassan Rouhani traveled to India on a three-day visit in mid February, his first since he took office in 2013.  The two countries signed 15 agreements, including one on avoidance of double taxation.