Iran seeks resumption of banking ties with India

Close on the heels of an easing of western sanctions and a thaw in tensions with the US and its allies, Iran has sought lifting of banking curbs by the Reserve Bank of India.

Speaking on the sidelines of the World Trade Organisation's 9th ministerial conference in Bali, Indonesia, Iran's industry minister Mohammad Reza Nematzadeh said his country was keen to remove restrictions on banking ties with India.

He said, he was hopeful the Reserve Bank of India (RBI) will address the issue as the two countries try to increase trade, particularly oil.

''Trade without removing banking restrictions will not grow..., we can have more trade if this is solved. The Indian government should facilitate it," Nematzadeh said.

Nematzadeh is understood to have discussed the issue during bilateral talks with his Indian counterpart commerce and industry minister Anand Sharma on the sidelines of the WTO summit.

During the first bilateral meeting after the easing of western sanctions on Iran, the two countries have discussed the need for energy security and the issue of connectivity to Central Asia and Afghanistan.

The minister also sought easing of sanctions on Iranian shipping companies and resumption of insurance cover to Iranian shipping lines.

India is Iran's second largest crude oil importer. Trade between the two countries touched $15.8 billion in 2012 with imports from Iran accounting for $13.27 billion of the two-way trade.