What changed
The rupee value of the special currency basket, used for deferred payment transactions under the 1981 and 1985 protocols with the erstwhile USSR, was revised from Rs.64.6153 (effective May 22, 2009) to Rs.66.5719, effective June 25, 2009. This revision was communicated via A.P. (DIR Series) Circular No.03 dated July 17, 2009.
What it means for you
Banks handling trade settlements under these protocols must use the new basket value for all transactions from June 25, 2009. This impacts the conversion rates for rupee-denominated payments linked to the special currency basket, affecting trade finance and settlement operations.
What you must do
- Update internal systems and records to reflect the new basket value of Rs.66.5719 effective June 25, 2009.
- Inform all relevant constituents, including corporate clients involved in trade with Russia, about the revised rate.
- Ensure all deferred payment transactions under the protocols are processed using the updated value from the effective date.
Who it affects
AD Category-I banks handling trade settlements under the Deferred Payment Protocols, Corporate clients with outstanding payments under the 1981 and 1985 protocols, Trade finance and forex operations teams
What is the special currency basket?
It is a basket of currencies used to determine the rupee value for deferred payment transactions between India and the erstwhile USSR under protocols signed in 1981 and 1985.
When does the new value take effect?
The revised rupee value of Rs.66.5719 is effective from June 25, 2009, as per the circular dated July 17, 2009.
Do we need to adjust past transactions?
No, the revision applies only to transactions from the effective date of June 25, 2009. Past transactions using the earlier value of Rs.64.6153 remain valid.