| Date: |
01-11-2001
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| Notification No: |
RBI A P D (Series)Circular No 10/2001
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
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| Subject: |
Asian Clearing Union (ACU) Mechanism - Exports to Nepal
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Asian Clearing Union (ACU) Mechanism - Exports to Nepal
As
authorised dealers are aware, in terms of the Reserve Bank Notifications No.
FEMA 14/RB-2000 and FEMA 17/RB-2000 dated May 3, 2000, all trade transactions
between a person resident in India and a person resident in Nepal may be settled
in rupees. It has now been decided that in case of export of goods to Nepal,
where an importer resident in Nepal has been permitted by the Nepal Rashtra Bank
to make payment in free foreign exchange, such payments shall be routed through
the ACU mechanism.
2.
Consequential changes in the Memorandum ACM will be intimated in due
course.
3.
Authorised dealers may bring the contents of the 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).
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