What changed
The rupee value of the special currency basket, previously set at Rs. 60.4958 effective May 31, 2006, has been revised to Rs. 58.6627 effective October 20, 2006. This revision took place on October 17, 2006.
What it means for you
This revision impacts the settlement of deferred payment obligations under the 1981 and 1985 protocols with the erstwhile USSR. Banks handling these transactions must use the new rate for all related payments from October 20, 2006, ensuring accurate conversion and compliance.
What you must do
- Update internal systems and records with the new special currency basket value of Rs. 58.6627 effective October 20, 2006.
- Notify all concerned constituents, including corporate clients and branches, about the revised rate.
- Ensure all deferred payment transactions under the protocols use the updated rate from the effective date.
- Maintain documentation of the circular for audit and compliance purposes.
Who it affects
AD Category I banks, Corporate clients with deferred payment obligations under the India-USSR protocols, Treasury and forex operations teams
What is the special currency basket and why is it revised?
The special currency basket is used to value deferred payment obligations under the 1981 and 1985 protocols between India and the erstwhile USSR. RBI revised its rupee value on October 17, 2006, as per the circular.