MANU/APDR/0085/2015

Ministry : Reserve Bank of India

Department/Board : RBI A.P. DIR (Series)

Circular No. : A. P. (DIR Series) Circular No. 26
                   RBI/2015-2016/230

Date : 05.11.2015

Notification/ Circulars Referred : A.P.(DIR Series) Circular No. 17 dated October 16, 2000 MANU/APDR/0010/2000;Notification No. FEMA 14/2000-RB dated May 3, 2000 MANU/RFEM/0006/2000;Notification No FEMA.347/2015-RB dated July 24, 2015 MANU/RFEM/0026/2015

Citing Reference:
A.P.(DIR Series) Circular No. 17 dated October 16, 2000 MANU/APDR/0010/2000  Referred

Notification No. FEMA 14/2000-RB dated May 3, 2000 MANU/RFEM/0006/2000  Referred

Notification No FEMA.347/2015-RB dated July 24, 2015 MANU/RFEM/0026/2015  Referred

To

All Authorised Dealers in Foreign Exchange

Madam / Sir,

Switching from Barter Trade to Normal Trade at the Indo-Myanmar Border

Attention of the Authorised Dealers is invited to A.P. (G.P. Series) Circular No.8 dated May 17, 1997 read with A.P.(DIR Series) Circular No. 17 dated October 16, 2000 in terms of which it has been stipulated that the border trade between Myanmar and India may be settled through barter system. Further, in terms of Regulation 3 and 5 of the Notification No. FEMA 14/2000-RB dated May 3, 2000 [viz. Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000] as amended from time to time, the trade transactions with Myanmar may be settled in any permitted currency in addition to the Asian Clearing Union mechanism.

2. Barter trade was initially permitted to facilitate exchange of locally produced commodities along the Indo-Myanmar border. As such, these transactions were not captured in the banking system or reflected in the trade statistics. However, over a period of time the trade basket has diversified and adequate banking presence is in place to support normal trade with Myanmar.