NEW DELHI, March 17 -- The Government of India issued the following FEMA circular:

RBI/2024-2025/125

A.P. (DIR Series) Circular No. 22

March 17, 2025

To

All Category-I Authorised Dealer Banks

Madam/ Sir

Asian Clearing Union (ACU) Mechanism - Indo-Maldives trade

Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to Subclause (a)(ii) of Clause (I) of Sub regulation 2 of Regulations 3 of Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 in terms of which trade transactions between ACU member countries are to be routed through the ACU mechanism or as per the directions issued by the Reserve Bank of India.

2. In the wake of signing of Memorandum of Understanding (MoU) between RBI and...