ACU Scope Restricted to Trade, Payments on Investments and Capital
Account between ACU Members only in USD
[RBI
Circular No. 63 dated 18th October 2013]
Sub:
Memorandum of Procedure for channeling transactions through Asian Clearing
Union (ACU)
Attention
of Authorised Dealer Category-I banks is invited to Para 7 and Para 8 of Annex to
the A.P.(DIR Series) Circular No.35 dated February 17, 2010.
2. The ACU Board
of Directors in their meeting held on June 19, 2013 have decided to include
only transactions involving export/import of goods and services among ACU
countries as eligible for payment under the ACU Mechanism. Accordingly, Para 7
and sub-paragraph (b) of Para 8 of the Annex to the A.P.(DIR Series) Circular
No.35 dated February 17, 2010 have been updated and given in Annex. All other
instructions contained in the A.P. (DIR Series) Circular No.35 dated February
17, 2010 shall remain unchanged.
3. AD Category-I
banks may bring the contents of this circular to the notice of their
constituents concerned.
4. The directions
contained in this Circular have been issued under Section 10(4) and Section
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without
prejudice to permissions/approvals, if any, required under any other law.
[Annex
to the A.P.(DIR Series)
Circular
No.63 of 18.10.2013]
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Extant Para 7 and Para 8(b) to the Annex of A.P.(DIR
Series) Circular No.35 dated February 17, 2010 |
Revised Para 7 and Para 8 (b) to the Annex of
A.P.(DIR Series) Circular No.35 dated February 17, 2010 |
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7. Eligible Payments Transactions that are eligible to be made through
ACU are payments – (a) from a resident in the territory of one
participant to a resident in the territory of another participant; (b) for current international transactions as
defined by the Articles of Agreement of the International Monetary Fund; (c) permitted by the country in which the payer
resides; (d) not declared ineligible under paragraph 8 of
this Memorandum; and (e) for export/import transactions between ACU
member countries on deferred payment terms. Note:- Trade transactions with Myanmar may be
settled in any freely convertible currency, in addition to the ACU mechanism.
8. Ineligible Payments (b) payments which are not on account of current
international transactions as defined by the International Monetary Fund,
except to the extent mutually agreed upon between Reserve Bank and the other
participants; and |
7. Eligible Payments Transactions that are eligible to be made through
ACU are payments – (a) for export/import transactions between ACU
member countries including export and import on deferred payment terms; and (b) not declared ineligible under paragraph 8 of
this Memorandum Note:- Trade transactions with Myanmar may be
settled in any freely convertible currency, in addition to the ACU mechanism.
8. Ineligible Payments (b) payments that are not on account of export /
import transactions between ACU members countries except to the extent
mutually agreed upon between the Reserve Bank and the other participants; and
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