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. 64.9196 (effective November 19, 2008) to Rs. 67.0394, effective December 23, 2008. This revision was communicated via A.P. (DIR Series) Circular No. 45 dated January 2, 2009.
What it means for you
For banks handling transactions under these protocols, the new rate impacts the conversion of special currency basket amounts into rupees, affecting settlement values. Lenders must ensure accurate application of the revised rate for all relevant transactions from the effective date to avoid discrepancies.
What you must do
- Update internal systems and records with the new rupee value of Rs. 67.0394 for the special currency basket effective December 23, 2008.
- Inform all concerned constituents, including customers and counterparties, about the revised rate.
- Ensure compliance with FEMA provisions under Sections 10(4) and 11(1) while implementing this change.
Who it affects
AD Category-I banks, Constituents involved in deferred payment transactions under the 1981 and 1985 protocols with the erstwhile USSR
What is the special currency basket mentioned in this circular?
It is a basket of currencies used to determine the rupee value for deferred payment transactions under the 1981 and 1985 protocols between India and the erstwhile USSR.
When does the new rupee value of Rs. 67.0394 take effect?
The revised rate is effective from December 23, 2008, as per the circular dated January 2, 2009.
Do I need to take any action as a customer of an AD Category-I bank?
Your bank should inform you of the revised rate. You may need to check if your transactions under these protocols are affected and ensure correct settlement.