RBI/2009-10/203
A. P. (DIR Series) Circular No. 14
October 30, 2009
To
All Authorised Dealer Category - I Banks
Madam / Sir,
Participants under ACU Mechanism-Inclusion of Maldives Monetary Authority
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited
to Section 3 of Article III of the General Provisions of Agreement Establishing
the Asian Clearing Union, regarding participation in the Asian Clearing Union
and Regulations contained in the 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.
- In the meeting of the Asian Clearing Union (ACU) Board of Directors held in
Colombo, Sri Lanka on June 16, 2009, the Maldives Monetary Authority (MMA) has
been admitted in the Asian Clearing Union as a Member. The Maldives Monetary
Authority will commence ACU operations with effect from January 1, 2010. All the
provisions of ACU mechanism, as applicable to ACU member countries, unless
otherwise specifically exempted, will be applicable to Maldives Monetary
Authority. AD Category - I banks may follow the provisions contained in the
Memorandum of Procedure for Channelling Transactions through Asian Clearing
Union (ACU) [Memorandum ACM] and the regulations contained in FEMA Notification
referred to above in this regard.
- 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.
- AD Category – I banks may bring the contents of this circular to the notice
of their constituents concerned.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
( D. Mishra )
Chief General Manager