Iran's envoy in New Delhi says India will make 45 percent of payments for Iranian crude oil in rupees, as
Western sanctions hinder international bank transactions.
Seyed Mehdi Nabizadeh was quoted as saying that the central banks of the two countries also agreed that Iran would use the Indian currency to buy goods from India.
AP quoted an Indian Foreign Ministry official as saying he was not aware of the purported agreement.
But the unidentified official said India was exploring all options to ensure oil supplies are not disrupted.
Iran contributes about 12 percent of India's oil imports.
Recent Western sanctions over Iran’s nuclear program have disrupted regular payment channels.
Compiled from agency reports