RBI/2008-09/332 A.
P. (DIR Series) Circular No. 43 December
26, 2008 To, All Authorised Dealer Category - I Banks Madam
/ Sir, Settlement system under ACU Mechanism Attention
of Authorised Dealer Category - I (AD Category - I) banks is invited to Article
IV (b) and (c) of the General Provisions of Agreement establishing the Asian Clearing
Union for channelling transactions through the Asian Clearing Union (ACU) in terms
of which, the Asian Monetary Unit is denominated as "ACU Dollar" and
Regulations 3 and 5 of 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 order to facilitate transactions / settlements, effective January 01, 2009,
participants in the Asian Clearing Union will have the option to settle their
transactions either in ACU Dollar or in ACU Euro. Accordingly, the Asian Monetary
Unit (AMU) shall be denominated as 'ACU Dollar' and 'ACU Euro' which shall be
equivalent in value to one US Dollar and one Euro, respectively. 3.
Further, AD Category – I banks are allowed to open and maintain ACU Dollar and
ACU Euro accounts with their correspondent banks in other participating countries.
All eligible payments are required to be settled by the concerned banks through
these accounts. 4. 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. 5. AD Category – I banks
may bring the contents of this circular to the notice of their constituents concerned. 6.
The directions 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, (D. Mishra) Chief
General Manager |
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