What changed
The rupee value of the special currency basket was revised from Rs. 65.0272 (effective February 6, 2009) to Rs. 67.2425, effective March 5, 2009. This revision applies to the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between the Government of India and the erstwhile USSR.
What it means for you
Banks handling transactions under these protocols must use the new basket value for settlements from March 5, 2009. The change reflects currency fluctuations and impacts the rupee equivalent of payments due under the bilateral agreements. AD Category-I banks need to ensure accurate application to avoid discrepancies in cross-border settlements.
What you must do
- Update internal systems with the new basket value of Rs. 67.2425 effective March 5, 2009.
- Notify all concerned constituents, including corporate clients dealing with erstwhile USSR trade settlements.
- Verify that all transactions under the Deferred Payment Protocols from March 5, 2009 use the revised rate.
- Maintain records of the circular for audit and compliance under FEMA, 1999.
Who it affects
AD Category-I banks, Corporate clients with trade settlements under India-USSR Deferred Payment Protocols, RBI's Foreign Exchange Department
What is the special currency basket used for?
It is used to determine the rupee value for settlements under the Deferred Payment Protocols between India and the erstwhile USSR, covering trade payments.
When does the new value of Rs. 67.2425 take effect?
The revision is effective from March 5, 2009, as per the circular dated March 24, 2009.
Which legal provisions govern this circular?
The circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.