ACU Dollar Account Statements: Regular Issuance Mandated
No longer current — replaced by FEMA 14(R)(1)/2025-RB
Source: Reserve Bank of India · RBI/2006-2007/392 · issued 10 May 2007 · ~1 min read
Quick answerRBI mandates AD Category-I banks to issue regular ACU Dollar account statements to foreign counterparties on a transaction basis and monthly, aligning with international best practices to reduce reconciliation issues.
What changed
RBI advised AD Category-I banks to issue ACU Dollar account statements regularly to foreign counterparties, both on a per-transaction basis and monthly. This replaces any earlier informal practices and aligns with international best practices to avoid reconciliation problems.
What it means for you
Banks must now systematically send ACU Dollar statements to foreign counterparties, ensuring timely and regular reporting. This reduces reconciliation errors and enhances operational efficiency in cross-border transactions through the Asian Clearing Union.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal systems to generate ACU Dollar account statements for each transaction and on a monthly basis.
Ensure statements are sent promptly to foreign counterparties to avoid reconciliation delays.
Train staff on the new reporting requirements under FEMA sections 10(4) and 11(1).
Review existing ACU transaction processes to align with this circular.
Who it affects
AD Category-I banks handling ACU transactions, Foreign counterparties of Indian banks in ACU settlements, RBI's Foreign Exchange Department
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 16:49 IST
Superseded by — FEMA 14(R)(1)/2025-RB
Status change: superseded10 Jul 2026, 04:07 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the key requirement of this circular?
AD Category-I banks must issue regular ACU Dollar account statements to foreign counterparties on a per-transaction basis and monthly, to align with international best practices and reduce reconciliation issues.
Under which legal provisions is this circular issued?
It is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and is without prejudice to other permissions or approvals required under any other law.
Does this circular replace any previous guidelines?
It supplements the Memorandum of Procedure for channelling transactions through ACU (April 2003) by adding specific statement issuance requirements.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byFEMA 14(R)(1)/2025-RB
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/392
A. P. (DIR Series) Circular No. 56
May 10, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Issue of ACU Dollar accounting statements
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to the Memorandum of Procedure for channelling transactions through Asian Clearing Union (ACU), April 2003.
2. In tune with international best practices and to avoid reconciliation problems, AD Category - I banks are advised to issue regular ACU Dollar account statements to their foreign counterparties as and when a transaction occurs and on a monthly basis.
3. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and Is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/392 · issued 10 May 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3509&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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