Settlement System under Asian Clearing Union (ACU) - FEMA - 81

RBI/2015-16/441 A.P. (DIR Series) Circular No. 81 June 30, 2016 To All Authorised Dealer Category-I Banks Madam / Sir, Settlement System under Asian Clearing Union (ACU) Attention of Authorised Dealer Category-I Banks is invited to the A.P. (DIR Series) Circular No. 43 dated December 26, 2008 , giving participants in ACU mechanism the option to settle their transactions either in ACU Dollar or in ACU Euro . The ACU Dollar and ACU Euro is equivalent in value to one US Dollar and one Euro, respectively. 2. As the payment channel for processing ACU Euro transactions is under review, it has become necessary to temporarily suspend operations in ACU Euro with effect from July 01, 2016. Accordingly, all eligible current account transactions including trade transactions in Euro are permitted to be settled outside the ACU mechanism until further notice. 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 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Shekhar Bhatnagar) Chief General Manager-in- charge