HONOLULU - The United States on Wednesday praised the Reserve Bank of India for reducing its dealings with Iran's central bank, saying the Islamic Republic misuses its financial relationships to support its nuclear program.

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"We think the Reserve Bank of India has made the right decision to carefully scrutinize and reduce its financial dealings with the Central Bank of Iran," White House spokesman Tommy Vietor said in an email.

"This latest action adds to the growing list of companies, financial institutions and governments that are increasingly concerned about Iran's misuse of trade and financial relationships to support illicit activity, including its nuclear program."