Tehran, Jun 10 (IANS): In a bid to promote two-way trade with India, Iran is exploring an alternative banking mechanism within the framework of the international law, its visiting Foreign Minister Dr. Hossein Amir-Abdollahian on Thursday.

In his address at an interactive meeting organised by MVIRDC World Trade Centre, Mumbai – an international trade promotion organisation, and the All India Association of Industries (AIAI), he said: "I had a fruitful discussion with senior ministers of the Indian government to establish such a banking mechanism."

Both the sides discussed the possibility of rupee-rial trade and agreed on a conducive legal mechanism to promote two-way commerce, he said.

Also, in his presence, a Memorandum of Understanding was signed between his nation and World Trade Centre, Mumbai to promote bilateral trade and investment as also with the All India Association of Industries.

Apart from establishing a banking mechanism, the two countries have also explored the possibilities of settling trade transactions in rupee or through barter system, said the minister, who is on a three-day visit to India.

Within the framework of international law, there are existing banking mechanisms which Iran has already implemented with a dozen countries, he said.

Iran's Deputy Minister of Judiciary, Fattah Ahmadi said: "Iran is clear in its intention to support trade and investment ties with India by signing an agreement on mutual legal assistance in civil and commercial matters."

The two Iranian ministers also invited Indian companies to explore trade and investment opportunities in Iran by assuring that its government will provide a conducive business environment to protect their commercial interests.