What changed
The rupee value of the special currency basket under the Deferred Payment Protocols between India and the erstwhile USSR was revised from Rs.60.5828 to Rs.62.5198, effective May 23, 2008. This update follows a previous revision on May 13, 2008, and reflects a further change as of May 20, 2008.
What it means for you
For AD Category-I banks, this revision impacts the valuation of transactions under the Deferred Payment Protocols, affecting settlements with constituents involved in trade or payments linked to the erstwhile USSR. Banks must update their systems to reflect the new basket value for accurate processing and reporting.
What you must do
- Update internal systems and records to reflect the new rupee value of Rs.62.5198 for the special currency basket effective May 23, 2008.
- Inform all relevant constituents, including corporate clients and trade finance desks, about the revised basket value.
- Ensure compliance with FEMA provisions under Sections 10(4) and 11(1) while processing transactions under these protocols.
Who it affects
AD Category-I banks, Constituents involved in trade or payments under Deferred Payment Protocols with the erstwhile USSR
What is the special currency basket mentioned in this circular?
It is a basket of currencies used under the Deferred Payment Protocols between the Government of India and the erstwhile USSR to determine the rupee value for settlements.
When does the new rupee value of Rs.62.5198 take effect?
The revised value is effective from May 23, 2008, based on a change that occurred on May 20, 2008.
Do I need to take any action if I am not an AD Category-I bank?
This circular directly applies to AD Category-I banks, but they are required to notify their constituents. If you are a client of such a bank, your bank should inform you of the change.