What changed
The rupee value of the special currency basket, used for deferred payment protocols between India and the erstwhile USSR, was revised from Rs. 58.6627 (effective October 20, 2006) to Rs. 56.8292, effective April 19, 2007. This revision was communicated via A. P. (DIR Series) Circular No.67 on June 1, 2007.
What it means for you
Banks handling transactions under the 1981 and 1985 deferred payment protocols must apply the new basket rate for all settlements from April 19, 2007 onward. This impacts the valuation of outstanding claims and payments linked to these protocols, requiring updates in systems and customer communications.
What you must do
- Update internal systems to reflect the new basket rate of Rs. 56.8292 for transactions effective April 19, 2007.
- Notify all concerned constituents about the revised rate and its effective date.
- Ensure compliance with FEMA Sections 10(4) and 11(1) while implementing this change.
Who it affects
AD Category-I banks, Constituents dealing with India-USSR deferred payment protocol transactions
What is the special currency basket used for?
It is used to value transactions under the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between the Government of India and the erstwhile USSR.
When does the new rate become effective?
The revised rate of Rs. 56.8292 is effective from April 19, 2007.
What was the previous rate?
The previous rate was Rs. 58.6627, effective from October 20, 2006, as per an earlier circular.