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This circular provides that in respect of export and import transactions where the invoicing is in a freely convertible currency and the settlement takes place in the currency of the beneficiary which does not have a direct exchange rate, banks can permit settlement of such export and import transactions (excluding those put through the ACU mechanism), subject to the following: –
a) Exporter / Importer must be a customer of the Bank.
b) Signed contract / invoice must be in a freely convertible currency.
c) The beneficiary is willing to receive the payment in the currency of beneficiary instead of the original (freely convertible) currency of the invoice / contract / Letter of Credit as full and final settlement.
d) Bank is satisfied about the bonafide of the transactions.
e) The counterparty to the exporter / importer of the bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non Cooperative Jurisdictions on which FATF has called for counter measures.
