Current · Source: Reserve Bank of India · RBI/2009-10/318 · issued 17 Feb 2010 · ~1 min read
Quick answerRBI has updated the Memorandum of Procedure for ACU transactions following the 37th ACU Board Meeting in June 2008. AD Category-I banks must implement the revised settlement system and inform their constituents.
The rule, in the simplest words
AD Category-I banks must review and update their internal procedures for ACU transactions according to the revised Memorandum ACM.
Banks must communicate the updated ACU transaction procedures to their constituents involved in ACU transactions.
The settlement systems of AD Category-I banks must reflect the changes decided at the 37th ACU Board Meeting in June 2008.
Staff handling ACU transactions must be trained on the new settlement mechanism.
How it plays out — a real example
A forex & trade-finance officer in Indore, Mr. Kumar, ensures that the bank's internal procedures for ACU transactions are updated according to the revised Memorandum ACM. He then communicates the changes to the bank's constituents involved in ACU transactions, including the local jewelers who use the bank's services. This ensures smooth cross-border clearing and compliance with the updated ACU mechanism.
What changed
The Memorandum ACM, which outlines procedures for channeling transactions through the Asian Clearing Union, has been revised to reflect changes in the settlement system decided at the 37th ACU Board Meeting in June 2008. The updated memorandum is annexed to this circular.
What it means for you
Banks handling ACU transactions must align their internal processes with the revised settlement procedures. This ensures compliance with the updated ACU mechanism and avoids disruptions in cross-border clearing. Non-compliance could lead to regulatory action under FEMA.
What you must do
Review the revised Memorandum ACM annexed to the circular and update internal procedures accordingly.
Communicate the updated ACU transaction procedures to all relevant constituents.
Ensure your settlement systems reflect the changes from the 37th ACU Board Meeting.
Train staff handling ACU transactions on the new settlement mechanism.
Who it affects
Authorised Dealer Category-I banks, Constituents of AD Category-I banks involved in ACU transactions
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the Asian Clearing Union (ACU)?
The ACU is a payment arrangement among central banks of certain Asian countries to settle payments for intra-regional transactions, reducing reliance on external currencies.
When was the 37th ACU Board Meeting held?
The 37th ACU Board Meeting was held in June 2008, where changes to the settlement system were decided.
What legal authority does this circular have?
This circular is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, and is without prejudice to other permissions required under any law.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “Para 7 and sub-paragraph (b) of Para 8 of the Annex to the A.P.(DIR Series) Circular No.35 dated February 17, 2010 have been updated”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/318
A. P. (DIR Series) Circular No. 35
February 17, 2010
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 (AD Category – I) banks is invited to the Memorandum containing detailed procedural instructions for channeling transactions through Asian Clearing Union (ACU) (Memorandum ACM) issued in April, 2003 and other relevant instructions issued from time to time.
2. In view of the changes effected in the settlement system in ACU mechanism, as decided in the 37th ACU Board Meeting held in June, 2008, the Memorandum ACM containing Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU) has been updated. The revised Memorandum ACM is annexed .
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 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,
(D. Mishra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/318 · issued 17 Feb 2010. The plain-English explanation above is BankPulse’s own independent summary.
Ensure your settlement systems reflect the changes from the 37th ACU Board Meeting.
Train staff handling ACU transactions on the new settlement mechanism.
📜 Compliance
Review the revised Memorandum ACM annexed to the circular and update internal procedures accordingly.
Communicate the updated ACU transaction procedures to all relevant constituents.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Dealer Category-I banks, Constituents of AD Category-I banks involved in ACU transactions), your first concrete step on “Updated ACU Transaction Procedures for AD Banks” is: “Review the revised Memorandum ACM annexed to the circular and update internal procedures accordingly.” (RBI issued this 17 Feb 2010).
Circular: RBI/2009-10/318 -- Updated ACU Transaction Procedures for AD Banks
Issued: 17 Feb 2010
Action required: Review the revised Memorandum ACM annexed to the circular and update internal procedures accordingly.
Action required: Communicate the updated ACU transaction procedures to all relevant constituents.
Action required: Ensure your settlement systems reflect the changes from the 37th ACU Board Meeting.
Action required: Train staff handling ACU transactions on the new settlement mechanism.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 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=5502&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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