*RBI Amends Payment Norms | Mandates ACU Mechanism for Transactions Between ACU Residents – Powered by Taxmann.com | Practice* #taxmannpractice The recent amendment to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations specifically changes the rules for trade transactions with member countries of the Asian Clearing Union (ACU), excluding Nepal and Bhutan. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: ‣ 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐟 𝐀𝐂𝐔 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦 – ACU mechanism or Reserve Bank directions only apply to payments between residents of two different ACU member countries ‣ 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐎𝐭𝐡𝐞𝐫 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 – For all other transactions between a resident in India and a resident of an ACU country (other than Nepal and Bhutan), payment can be made in INR or any foreign currency For Detailed Guidelines on Compounding under FEMA, Visit: https://taxmann.social/IaOxV 𝘛𝘩𝘪𝘴 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘪𝘴 𝘣𝘳𝘰𝘶𝘨𝘩𝘵 𝘵𝘰 𝘺𝘰𝘶 𝘣𝘺 𝘛𝘢𝘹𝘮𝘢𝘯𝘯.𝘤𝘰𝘮 | 𝘗𝘳𝘢𝘤𝘵𝘪𝘤𝘦 #taxmannupdates #fema #rbi #acu #foreigncurrency #trade