India has decided to revive the rupee payment mechanism for crude imports from Iran, reports CNBC-TV18's Anshu Sharma quoting sources.

Indian government is looking at using the rupee payment mechanism for the Iran crude, which will be supplied to India.

Right now, Iran is the second largest supplier to India. Over $11 billion of trade is done on account of crude from Iran to India.

The only two payment options left were — one, the credit mechanism and two, rupee payment mechanism because of US sanction imposed on Iran, the banks will stop taking these payments.

The rupee-rial mechanism was already in place, when Iran had undergone US sanction but those were lifted in 2015 and the mechanism had been curbed.

However, now Indian and Iran are looking to reestablish that rupee-rial mechanism while importing crude from Iran into India.

First Published:Jun 22, 2018 6:29 PM IST