Settlement of Export/ Import transactions in currencies not having a direct exchange rate

Settlement in beneficiary currency allowed when AD banks confirm customer, invoice, consent, bonafides and high risk jurisdiction checks.

AD Category I banks may permit settlement of export and import transactions in the beneficiary's currency where the contract/invoice is in a freely convertible currency, the exporter/importer is a customer of the AD bank, the beneficiary agrees to receive payment in its currency as full settlement, the AD bank is satisfied of the transaction's bonafides, and the counterparty is not from jurisdictions on the updated high risk/non cooperative list; these transactions exclude the ACU mechanism and are reflected in updated Master Directions on exports and imports.