What changed
The rupee value of the special currency basket, previously set at Rs. 67.0394 effective December 23, 2008, was revised to Rs. 65.0272 effective February 6, 2009. This change was notified via A.P. (DIR Series) Circular No. 52 dated February 19, 2009.
What it means for you
This revision impacts the valuation of transactions under deferred payment protocols with the former USSR. Banks must ensure accurate conversion rates for related payments and receipts, affecting trade finance and settlement operations.
What you must do
- Update internal systems with the new basket value of Rs. 65.0272 effective February 6, 2009.
- Inform all relevant constituents, including corporate clients handling deferred payment transactions with the erstwhile USSR.
- Ensure compliance with FEMA Sections 10(4) and 11(1) for all related transactions.
Who it affects
AD Category-I banks, Corporate clients with deferred payment agreements under the 1981 and 1985 protocols, Trade finance departments handling Indo-Russian legacy transactions
What is the new rupee value of the special currency basket?
The rupee value has been revised to Rs. 65.0272, effective from February 6, 2009, replacing the earlier value of Rs. 67.0394.
Which transactions does this circular apply to?
It applies to deferred payment protocols dated April 30, 1981 and December 23, 1985 between the Government of India and the erstwhile USSR.
What legal authority backs this circular?
The circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.