Concerns raised by Germany's Bundesbank led India to suspend trade in euros through the Asian Clearing Union, a regional trade settlement system, H.R. Khan, deputy governor of the Reserve Bank of India, said on Monday. The German central bank was reluctant to clear all ACU transactions on a net basis and instead wanted to clear on an every transaction basis, Khan said, just before retiring from his post. Last week, the RBI said it was suspending all euro transactions through the ACU mechanism, without giving a reason. India's central bank is also looking at diversifying its foreign exchange reserves with yuan investments, as the country seeks to diversify its holdings, Khan told Reuters in an interview.