What changed
The Rupee value of the Special Currency Basket was revised from Rs 78.193501 (effective June 26, 2012) to Rs 75.816175, effective July 6, 2012. This revision was made on July 3, 2012, and communicated via this circular dated July 13, 2012.
What it means for you
Banks handling transactions under the Deferred Payment Protocols with the erstwhile USSR must use the new basket value for settlements from July 6, 2012. This change impacts the conversion rate for rupee-denominated obligations under these protocols, potentially affecting cash flows and accounting entries.
What you must do
- Update internal systems and records with the new Special Currency Basket value of Rs 75.816175 effective July 6, 2012.
- Notify all concerned constituents, including corporate clients and branches, about the revised rate.
- Ensure all transactions under the Deferred Payment Protocols from July 6, 2012, use the updated basket value.
- Comply with the directions issued under sections 10(4) and 11(1) of FEMA, 1999 for these transactions.
Who it affects
AD Category-I banks, Corporate clients dealing with erstwhile USSR trade settlements, Treasury and forex operations teams
What is the Special Currency Basket?
It is a composite currency unit used under the Deferred Payment Protocols between India and the erstwhile USSR for settling trade debts. Its Rupee value is periodically revised by RBI.
When does the new rate take effect?
The revised Rupee value of Rs 75.816175 is effective from July 6, 2012, as per the circular dated July 13, 2012.
Do we need to adjust past transactions?
No, the revision applies only to transactions from July 6, 2012 onward. Earlier transactions should use the previous rate of Rs 78.193501 effective June 26, 2012.