Money and jewelery collected for humanitarian aid by the Iranian Embassy in India will no longer be able to be sent to Tehran. Due to strict rules and financial scrutiny of the Reserve Bank of India (RBI), this fund has not been allowed to be sent out through diplomatic channels. According to the latest report, now this saved capital will be used to purchase essential goods within India.
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What are the main reasons for money not being able to go out?
Check the rules: Under India’s Foreign Exchange Management Act (FEMA), there are strict guidelines for sending money abroad which must be followed.
RBI approval: Any foreign mission sending funds out on a large scale has to go through the scrutiny of the Reserve Bank.
International sanctions: Due to international sanctions imposed on countries like Iran, the process of banking and fund transfer becomes very complex.
Vienna Convention: Although the convention provides banking facilities to embassies, it has limited clear rules on fundraising and sending it out.
Now what will happen to this donated money and jewellery?
According to the report of April 2, 2026, the solution to this problem has been that the funds collected will be spent in India only. With this money, essential medicines and other medical items can be purchased for Iran, which will then be sent to Iran. In mid-March, the Iranian Embassy had told that they were facing technical problems in Google Pay and digital payments, after which they had asked to accept donations through State Bank of India (SBI) account and cash. External Affairs Ministry spokesperson Randhir Jaiswal had also earlier confirmed that the funds were being deposited in Indian bank accounts.