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Maldives Monetary Authority Joins ACU: New Member from Jan 2010

Current · Source: Reserve Bank of India · RBI/2009-10/203 · issued 30 Oct 2009 · ~1 min read
Quick answerMaldives Monetary Authority has been admitted as a member of the Asian Clearing Union (ACU) effective January 1, 2010. All ACU rules apply to Maldives. AD Category-I banks must follow existing ACU procedures and FEMA regulations for transactions with Maldives.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Priya, gets a call from a customer who wants to pay for gold imported from Maldives. She checks her bank's system, which now lists Maldives as an ACU member, and explains to the customer that the payment can be settled through the ACU mechanism, saving on extra currency conversion fees. Priya then follows the standard ACU procedures she learned in a recent training session to process the transaction smoothly.

What changed

The ACU Board admitted Maldives Monetary Authority as a new member in June 2009, with operations starting January 1, 2010. All standard ACU provisions now apply to Maldives unless specifically exempted. Separate amendments to FEMA regulations and the ACU Memorandum will follow.

What it means for you

Indian banks can now settle trade transactions with Maldives through the ACU mechanism, reducing reliance on external currencies and lowering transaction costs. This expands the ACU network, facilitating smoother regional trade settlements. Banks must ensure compliance with existing ACU procedures and FEMA rules for Maldives-related transactions.

What you must do

Who it affects

AD Category-I banks handling cross-border trade settlements, Importers and exporters trading with Maldives, Treasury and forex operations teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When does the Maldives Monetary Authority start ACU operations?

Maldives Monetary Authority will commence ACU operations from January 1, 2010.

Do all ACU rules apply to Maldives?

Yes, all provisions of the ACU mechanism apply to Maldives unless specifically exempted.

What should banks do to prepare for this change?

Banks should follow existing ACU procedures and FEMA regulations, and inform their customers about the new membership.

📜 Read the original circular — full text as issued by RBI
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. 2. 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. 3. 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. 4.  AD Category – I banks may bring the contents of this circular to the notice of their constituents concerned. 5. 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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/203 · issued 30 Oct 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Update internal systems to include Maldives as an ACU member country for trade settlement.
📜 Compliance
  • Train staff on ACU procedures for transactions with Maldives, effective January 1, 2010.
  • Inform customers about the new ACU membership and its implications for trade with Maldives.
  • Monitor RBI notifications for separate amendments to FEMA regulations and ACU Memorandum.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an Operations officer at a bank this circular applies to (AD Category-I banks handling cross-border trade settlements, Importers and exporters trading with Maldives, Treasury and forex operations teams), your first concrete step on “Maldives Monetary Authority Joins ACU: New Member from Jan 2010” is: “Update internal systems to include Maldives as an ACU member country for trade settlement.” (RBI issued this 30 Oct 2009).

  1. Circular: RBI/2009-10/203 -- Maldives Monetary Authority Joins ACU: New Member from Jan 2010
  2. Issued: 30 Oct 2009
  3. Action required: Update internal systems to include Maldives as an ACU member country for trade settlement.
  4. Action required: Train staff on ACU procedures for transactions with Maldives, effective January 1, 2010.
  5. Action required: Inform customers about the new ACU membership and its implications for trade with Maldives.
  6. Action required: Monitor RBI notifications for separate amendments to FEMA regulations and ACU Memorandum.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5339&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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