RBI permits banks to settle Sri Lankan trade in currency outside the ACU mechanism

The RBI has decided to permit banks to settle all eligible current account transactions including trade transactions with Sri Lanka in any permitted currency outside the ACU mechanism until further notice. The Asian Clearing Union, or ACU, is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. Under the ACU, member central banks settle payments for intra-regional transactions on a net basis.The RBI has decided to permit banks to settle all eligible current account transactions including trade transactions with Sri Lanka in any permitted currency outside the ACU mechanism until further notice. The Asian Clearing Union, or ACU, is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. Under the ACU, member central banks settle payments for intra-regional transactions on a net basis.taxmann.com Latest Statutory HappeningsRead More

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