**Summary:**
This circular, RBI/2015-16/411, A.P. DIR Series Circular No. 72, issued by the Reserve Bank of India (RBI) on May 26, 2016, addresses all Authorised Dealer Category-I Banks regarding revisions to the procedures for channeling transactions through the Asian Clearing Union (ACU). Specifically, it modifies paragraph 11 of the Memorandum ACM issued on February 17, 2010. The circular revises the minimum amount and multiples in which the Reserve Bank will receive and pay U.S. Dollars and Euros for funding or repatriating excess liquidity in ACU Dollar and ACU Euro accounts. The new minimum amount and multiples are set at $500 and €500, respectively. These revisions are based on an understanding reached during the 44th Meeting of the ACU Board of Directors in June 2015. Authorised Dealer Category-I Banks are instructed to inform their constituents of these changes. The directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Shekhar Bhatnagar, Chief General Manager-in-Charge, issued the circular.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Mumbai, Maharashtra: The financial capital of India, where the Reserve Bank of India is headquartered.
Asian Clearing Union (ACU): A payment arrangement whereby participants settle payments for intra-regional transactions among the participating central banks on a multilateral basis.
Authorised Dealer Category-I Banks: Banks authorized by the Reserve Bank of India to deal in foreign exchange.
ACU Dollar: The currency used for transactions within the Asian Clearing Union, denominated in U.S. Dollars.
ACU Euro: The currency used for transactions within the Asian Clearing Union, denominated in Euros.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Shekhar Bhatnagar: Chief General Manager-in-charge at Reserve Bank of India.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/ 411 May 26, 2016
A.P. (DIR Series) Circular No.72
To
All Authorised Dealer Category-I Banks
Madam / Sir,
Memorandum of Procedure for channeling transactions through Asian Clearing
Union (ACU)
Attention of Authorised Dealer Category-I Banks is invited to the Memorandum
containing detailed procedural instructions for channeling transactions through the
Asian Clearing Union (ACU) (Memorandum ACM) issued on February 17, 2010, as
amended from time to time. In terms of paragraph 11 of the Memorandum the
minimum amounts and the multiples in which Reserve Bank receives and pays
U.S. Dollar/ Euro is $ 25,000/ € 25,000 and $ 1,000/ € 1,000, respectively.
2. In view of the understanding reached amongst the members of the ACU during the
44rth Meeting of the ACU Board of Directors in June, 2015, it has been decided to
revise the minimum amount and the multiples in which Reserve Bank will receive and
pay for the purpose of funding or for repatriating the excess liquidity in the ACU
Dollar and ACU Euro accounts to $ 500 / € 500.
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