India, Iran Agree to Clear $6.4B in Oil Payments Via European Banks

Reserve Bank of India Governor Raghuram Rajan said on April 5 India will make payments to Iran in a staggered manner.

"Oil companies are working out the banking arrangements in coordination with Iranian counterparts and payments will be made by them presumably over time with minimal impact on the market," an RBI spokesperson said on Thursday.

Despite the sanctions, India continued its engagement with Iran and was among a handful of countries that sourced oil from Tehran.

Iran was India's second-biggest oil supplier before the sanctions hampered its trade relations. The country is set to import at least 400,000 barrels per day of Iranian oil in the year from April 1. ($1 = 66.5330 Indian rupees)

(Additional Reporting by Suvashree D Choudhury in MUMBAI, Nevzat Devranoglu in ANKARA; Editing by Christian Schmollinger)