What changed
The Rupee value of the special currency basket, used for deferred payment arrangements with the erstwhile USSR, was revised from ₹60.897378 (effective April 9, 2010) to ₹63.0402 effective May 31, 2010. This revision was communicated via A.P. (DIR Series) Circular No.55 dated June 15, 2010.
What it means for you
Banks handling transactions under the India-USSR Deferred Payment Protocols must use the new basket value for all related settlements from May 31, 2010. The change reflects currency fluctuations and impacts the Rupee equivalent of outstanding payments. Lenders should ensure accurate conversion and reporting to avoid discrepancies.
What you must do
- Update internal systems with the new basket value of ₹63.0402 effective May 31, 2010.
- Notify all concerned constituents, including corporate clients, about the revised rate.
- Ensure all deferred payment transactions under the protocols use the updated value from the effective date.
- Review past transactions from May 31 to June 15 for any adjustments needed.
Who it affects
AD Category-I banks, Corporate clients with deferred payment obligations under India-USSR protocols, Treasury and forex operations teams
What is the special currency basket used for?
It is used to determine the Rupee value of payments under the Deferred Payment Protocols between India and the erstwhile USSR, dated April 30, 1981, and December 23, 1985.
When does the new rate of ₹63.0402 take effect?
The revised rate is effective from May 31, 2010, as per the circular issued on June 15, 2010.
Do we need to inform our customers about this change?
Yes, the circular explicitly advises AD Category-I banks to bring the contents to the notice of their constituents concerned.