Authorised dealers should make remittances from India or provide reimbursement to their overseas branches and correspondents in foreign countries (other than Nepal and Bhutan) against payments due for imports into India and other payments in a manner conforming to the methods of payment indicated below:
Group
(i) All countries other than those listed under (ii) below | Permitted methods
(a) Payment in rupees to the account of a resident of any country in this Group
(b) Payment in any permitted currency
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(ii) Member countries in the Asian Clearing Union (expect Nepal)
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(a) Payment for all eligible current transactions by credit to the ACU dollar account in India of a bank of the participating country in which is resident or by debit to the ACU dollar account of the authorised dealer maintained with the correspondent bank in the other participating country.
(b) Payment in any permitted currency in other cases |
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- NOTES:
- A. In respect of imports, payment must be made in a currency appropriate to the country of shipment of the goods. In cases, however, where goods are shipped from an ACU member country (other than Nepal) but the supplier is a resident of a country other than a member country of ACU, payment can be made in the manner specified for countries in Group (i)
B. Government of India has concluded and may conclude from time to time Special Trade and Payments Agreements with some countries providing for settlement of certain payments to the countries in a specified manner. Wherever authorised dealers have been advised about such arrangements, the method of payment specified therein will have to be followed in such cases.
C. Government of India had entered into bilateral trade and payment agreements with certain east European countries under which transactions were hitherto settled in non-convertible Indian rupees. In terms of fresh agreements entered into with these countries, payments/receipts for trade etc. transactions are to be settled in convertible currency and liquidation of outstanding rupee balances in favour of banks in these countries is permitted by export of goods/services from India. Besides, repayment of rupee-denominated commercial credits granted by organisations in the erstwhile USSR under the Protocols of deliveries of machinery and equipment from the erstwhile USSR on deferred payment terms signed on 30th April 1981 and 23rd December 1985 and repayment of State Credits granted by the erstwhile USSR are permitted by export of goods and services and the Indian exporter is permitted to receive proceeds of his exports in such cases in Indian rupees. Authorised dealers should be guided by the instructions issued to them separately in this regard from time to time.