What changed
The rupee value of the special currency basket was revised from Rs.56.8292 (effective April 19, 2007) to Rs.54.9580, effective May 3, 2007. The revision took place on April 26, 2007, and was communicated via this circular dated June 7, 2007.
What it means for you
This change impacts the valuation of deferred payment obligations under the 1981 and 1985 protocols with the erstwhile USSR. Banks must adjust their accounting and reporting for related transactions to reflect the new basket value.
What you must do
- Update internal systems with the new special currency basket value of Rs.54.9580 effective May 3, 2007.
- Inform all relevant constituents about the revised rupee value for transactions under the Deferred Payment Protocols.
- Ensure compliance with FEMA sections 10(4) and 11(1) as per the directions in this circular.
Who it affects
AD Category-I banks, Constituents dealing with deferred payment transactions under the India-USSR protocols
What is the special currency basket used for?
It is used to determine the rupee value for deferred payment obligations under the 1981 and 1985 protocols between India and the erstwhile USSR.
When does the new value take effect?
The revised value of Rs.54.9580 is effective from May 3, 2007.