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 ₹63.0381 (effective March 11, 2010) to ₹60.897378, effective April 9, 2010. This revision was communicated via A.P. (DIR Series) Circular No.48 dated April 26, 2010.
What it means for you
Banks handling transactions under these protocols must apply the new basket value for settlements from April 9, 2010. The lower Rupee value may reduce the Rupee outlay for importers or borrowers under these agreements. AD Category-I banks need to ensure accurate application to avoid discrepancies in cross-border payments.
What you must do
- Update your systems with the new special currency basket value of ₹60.897378 effective April 9, 2010.
- Inform all concerned constituents, including importers and borrowers, about the revised rate.
- Ensure all transactions under the Deferred Payment Protocols from April 9, 2010 use the updated value.
- Maintain records of the circular and its implementation for audit and compliance purposes.
Who it affects
AD Category-I banks, Importers and borrowers under India-USSR deferred payment protocols, Constituents involved in trade settlements with the erstwhile USSR
What is the special currency basket and why is it revised?
The special currency basket is a mechanism used to determine the Rupee value for deferred payment transactions under the 1981 and 1985 protocols between India and the erstwhile USSR. It is revised periodically by RBI based on exchange rate movements.
From which date is the new Rupee value effective?
The new Rupee value of ₹60.897378 is effective from April 9, 2010, as per the revision that took place on April 6, 2010.
Do I need to adjust past transactions made before April 9, 2010?
No, the revision applies only to transactions from April 9, 2010 onward. Transactions prior to that date should use the earlier value of ₹63.0381 effective from March 11, 2010.