RBI/2004-05/280
A.P. (DIR Series) Circular No.28
November 19, 2004
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sirs,
Indo-Myanmar Trade – Relaxation from ACU Mechanism
Attention of Authorised Dealer (AD) banks
is invited to Regulations 3 and 5 of Notification
No.FEMA.14/2000-RB dated May 3, 2000 read with items 7(b) and 7(e) of the
Memorandum of Procedure for channelling transaction through Asian Clearing Union
(ACU) in terms of which, all current account transactions as defined by the
Articles of Agreement of the Iternational Monetary Fund and export / import
transactions between ACU member countries on deferred payment terms respectively,
are to be routed through the ACU mechanism.
2. In the wake of certain international developments,
the above provisions have been reviewed and it has been decided to allow trade
transactions with Myanmar to be settled in any freely convertible currency in
addition to the ACU mechanism.
3. Necessary amendments to the Foreign Exchange
Management (Manner of Receipt and Payment) Regulations, 2000 are being issued
separately.
4. Authorised Dealer banks may bring the
contents of this circular to the notice of their constituents concerned.
5. The direction contained in this circular
has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management
Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully,
F.R.Joseph
Chief General Manager
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