RBI. No. 2008-09 /472
DBOD. No. Dir. BC. 132/13.03.00/2008-09
May 7, 2009
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir
Asian Clearing Union (ACU) -
Payment of interest on ACU USD/EUR Accounts
In terms of our circular DBOD. No. Dir. BC. 58/13.01.09/2000 dated December 19,
2000 banks operating in India have been allowed to pay interest, at their
discretion, on ACU Dollar Vostro Accounts.
- Pursuant to a decision taken by the Board of Directors at the 37th Board
meeting of the Asian Clearing Union (ACU) in June 2008, the EURO has been
adopted as a settlement currency under the ACU mechanism with effect from
January 1, 2009. Further, it was also decided at the above meeting that central
banks of the ACU member countries would allow commercial banks under their
respective jurisdictions to pay interest, at their discretion, on the balances
in ACU Dollar accounts as also the ACU Euro accounts of correspondent banks of
other ACU member countries maintained by them.
- Accordingly, it has been decided to allow banks operating in India to pay
interest, at their discretion, on ACU Euro Vostro accounts in addition to ACU
Dollar Vostro accounts maintained by them. The decision to pay interest and the
rate at which it will be paid and other conditions will, however, be left to the
discretion of each bank.
Yours faithfully
(P.Vijaya Bhaskar)
Chief General Manager