What changed
The Rupee value of the Special Currency Basket, used for deferred payment protocols with the erstwhile USSR, was revised from Rs.80.972091 (effective June 25, 2013) to Rs.83.45023, effective August 12, 2013. This revision was notified via A.P. (DIR Series) Circular No.26 dated August 14, 2013.
What it means for you
Banks handling transactions under the India-USSR deferred payment protocols must use the new basket value for all settlements from August 12, 2013. This change impacts the conversion rates for related trade and debt repayments, requiring system updates and customer communication.
What you must do
- Update your systems with the new Special Currency Basket value of Rs.83.45023 effective August 12, 2013.
- Inform all concerned constituents, including corporate clients dealing with erstwhile USSR trade settlements.
- Ensure compliance with FEMA sections 10(4) and 11(1) for all transactions under these protocols.
Who it affects
AD Category-I banks, Corporate clients with deferred payment obligations to erstwhile USSR, Trade finance departments handling protocol-based settlements
What is the Special Currency Basket and why was its value revised?
The Special Currency Basket is a reference rate used for settlements under the Deferred Payment Protocols between India and the erstwhile USSR. Its value was revised from Rs.80.972091 to Rs.83.45023 effective August 12, 2013, reflecting changes in currency valuations.
Which transactions are affected by this revision?
All transactions under the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between the Government of India and the erstwhile USSR are affected. Banks must use the new rate for settlements from August 12, 2013.
What are the compliance requirements for AD Category-I banks?
Banks must update their systems with the new rate, inform all concerned constituents, and ensure all related transactions comply with FEMA sections 10(4) and 11(1).