Two privately-owned Iranian banks, Parsian and Saman, plan to open branches in India, Chairman of Iran-India Business Council (IIBC) Ebrahim Jamili said.
"Saman Bank and Bank Pasargad of Iran will open two branches in India in the near future," Jamili told ILNA news agency on July 31.
He added that this could to a great extent help Iranian merchants As it could open up a significant financial channel that will ensure the smooth flow of funds between the two countries following the returning US sanctions and amid potential blockade of bank accounts.
The official said the two sides are also exploring the possibility of reviving the rupee-rial arrangement in the wake of the sanctions.
India has always remained committed to its obligations even during the sanctions era, Jamili stressed.
The first set of Washington’s sanctions will take effect on Aug. 6, and the rest, notably in the petroleum sector, following a 180-day "wind-down period" ending on Nov. 4.