All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

PAYMENT UNDER ACU ARRANGEMENT
BETWEEN INDIA – PAKISTAN.

As you are aware, routing of transactions with member countries through ACU Arrangement was temporarily suspended by India because of adoption of dual exchange rate structure and the Indian exporters were given the option of receiving the proceeds of goods exported by them outside the ACU Arrangement. State Bank was accordingly considering the requests from the Pakistani importers for opening letters of credit outside the above Arrangement on case to case basis.

2. Effective 1st March, 1993 the Indian Rupee has been made fully convertible and the dual exchange rate structure has been abolished. Consequently, Reserve Bank of India has reintroduced the payment arrangement under the ACU mechanism. In view of the power of foregoing, the requests for opening of letters of credit for import from India outside ACU mechanism will not be entertained by us and all payments will compulsorily be required to be made under the ACU arrangement.