Maldives Included as a Member of ACU

[RBI Circular No. 14 dated 30th October 2009]

Sub: Participants under ACU Mechanism- Inclusion of Maldives Monetary Authority

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Section 3 of Article III of the General Provisions of Agreement Establishing the Asian Clearing Union, regarding participation in the Asian Clearing Union and Regulations contained in the Notification No. FEMA 14/2000-RB dated May 3, 2000 [Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000], as amended from time to time.

2. In the meeting of the Asian Clearing Union (ACU) Board of Directors held in Colombo, Sri Lanka on June 16, 2009, the Maldives Monetary Authority (MMA) has been admitted in the Asian Clearing Union as a Member. The Maldives Monetary Authority will commence ACU operations with effect from January 1, 2010. All the provisions of ACU mechanism, as applicable to ACU member countries, unless otherwise specifically exempted, will be applicable to Maldives Monetary Authority. AD Category - I banks may follow the provisions contained in the Memorandum of Procedure for Channelling Transactions through Asian Clearing Union (ACU) [Memorandum ACM] and the regulations contained in FEMA Notification referred to above in this regard.

3. Necessary amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 and Memorandum of Procedure for Channelling Transactions through Asian Clearing Union (ACU) [Memorandum ACM] are being issued separately.

4. AD Category – I banks may bring the contents of this circular to the notice of their constituents concerned.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.