What changed
The Rupee value of the special currency basket, previously set at Rs.66.5719 effective June 25, 2009, was revised to Rs.65.29 effective January 11, 2010. This change 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 January 11, 2010. The revision reflects changes in the underlying currency basket composition or exchange rates, impacting the Rupee equivalent of payments due.
What you must do
- Update internal systems and records to reflect the new Rupee value of Rs.65.29 for the special currency basket effective January 11, 2010.
- Notify all concerned constituents, including corporate clients and branches, about the revised basket value.
- Ensure all transactions under the Deferred Payment Protocols from January 11, 2010 use the updated rate.
Who it affects
AD Category-I banks, Constituents of AD Category-I banks involved in trade with the erstwhile USSR under the protocols
What is the special currency basket mentioned in this circular?
It is a basket of currencies used to determine the Rupee value for payments under the Deferred Payment Protocols between India and the erstwhile USSR, originally signed in 1981 and 1985.
When does the new Rupee value of Rs.65.29 take effect?
The revised value is effective from January 11, 2010, as per the revision that took place on January 6, 2010.
Which banks are required to comply with this circular?
All AD Category-I banks are required to comply and bring the contents to the notice of their constituents.