Mukherjee said India and Iran have resolved their problem over payments, which started at the end of last year when, under US pressure, the Reserve Bank of India scrapped a long-standing regional clearing house mechanism.But the new payment mechanism, which uses Turkey's state-owned Halkbank to route payments to Iran, has not received the US Treasury's blessing."Treasury has not been consulted on this conduit and has therefore not offered a view," Treasury Department spokeswoman Marti Adams said in a statement. She did not say whether the Treasury would issue a judgment on the arrangement.India is Iran's second-biggest customer after China and purchases some 12 percent of its oil needs from Iran.Indian refiner Hindustan Petroleum said on Friday that it had already paid $150 million, would make a $45 million payment on Tuesday, and hoped to clear $1.01 billion in debts to Iran by next month.HPCL said it hoped that crude deliveries from Iran would resume in September. The company and fellow refiners Essar and BPCL took an additional 1 million barrels from Saudi Arabia in August to make up for the halt in Iranian shipments.Mukherjee said the Indian payment conduit's mechanism was confidential.But P.K. Goyal, head of finance at Indian Oil Corp., the country's largest refiner, said Indian companies have opened an account with Union Bank of India, which is making the payments in euros to Halkbank, which is then transferring funds to National Iranian Oil Co.'s account at the bank.Goyal said on Wednesday the company had paid Iran 73 million euros ($103 million) using the arrangement.Washington has warned Turkish banks to refrain from transactions with local branches of Iranian state banks that have been slapped with US sanctions, including Bank Mellat. US officials have said some banks in Turkey could face being cut off from the US financial system if they persist in dealing with Mellat, although they declined to identify any specific institutions.US officials have thus far offered little direct guidance to New Delhi on how to resolve the Iran oil payments problem, other than to warn against using blacklisted banks.A proposed payment conduit through Hamburg, Germany-based Europaisch Iranische Handelsbank (EIH) was scrapped earlier this year after the European Union followed the United States in imposing sanctions on the Iranian-owned institution.Iran has received 1 billion euros ($1.4 billion) from India in the last 10 days, an Iranian official said on Monday.