What changed
The Rupee value of the special currency basket, previously set at Rs.60.8816 effective June 24, 2010, was revised to Rs.62.788607 effective July 7, 2010. This revision reflects a change in the basket's valuation as per the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985.
What it means for you
Banks handling transactions under these protocols must use the new rate for settlements from July 7, 2010. This impacts the conversion of payments related to India's deferred payment agreements with the former USSR, affecting cash flows and accounting for involved entities.
What you must do
- Update internal systems and records with the new Rupee value of Rs.62.788607 effective July 7, 2010.
- Notify all concerned constituents, including corporate clients and branches, about the revised basket value.
- Ensure all transactions under the Deferred Payment Protocols from July 7, 2010 use the updated rate.
Who it affects
AD Category-I banks, Corporate clients dealing with deferred payments to the erstwhile USSR, Branches handling protocol-related transactions
What is the special currency basket?
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, as per agreements from 1981 and 1985.
When does the new rate take effect?
The revised Rupee value of Rs.62.788607 is effective from July 7, 2010.
Do we need to inform customers?
Yes, AD Category-I banks must bring the circular's contents to the notice of their constituents concerned.