NEW DELHI, July 23 -- State-run UCO Bank says it continues to facilitate sanctions-compliant rupee trade with banks in Iran and Russia, underscoring the continued role of India's alternative payment channels as geopolitical tensions reshape global trade.

"We are doing only compliant business. Whatever transactions are permitted under sanctions, FEMA and regulatory guidelines, only those are being undertaken," UCO Bank's acting managing director and chief executive Rajendra Kumar Saboo told Mint in an interview following the bank's Q1FY27 results.

The lender continues to maintain Special Rupee Vostro Accounts (SRVAs) for Russian banks under the Reserve Bank of India's (RBI) framework, while rupee vostro accounts for certain Iranian banks...