What changed
The Rupee value of the Special Currency Basket was revised from Rs.86.857663 (effective August 23, 2013) to Rs.92.985396, effective September 2, 2013. This revision, notified on August 28, 2013, updates the exchange rate used for deferred payment transactions under the 1981 and 1985 protocols with the erstwhile USSR.
What it means for you
Banks handling deferred payment transactions under the India-USSR protocols must use the new Rupee value for settlements from September 2, 2013. This change affects the valuation of outstanding claims and repayments, potentially impacting forex exposure and accounting entries for AD Category-I banks.
What you must do
- Update internal systems and records with the new Special Currency Basket value of Rs.92.985396 effective September 2, 2013.
- Inform all concerned constituents, including corporate clients and branches handling USSR protocol transactions.
- Ensure compliance with FEMA sections 10(4) and 11(1) while implementing this revision.
Who it affects
AD Category-I banks handling deferred payment transactions under India-USSR protocols, Corporate clients with outstanding claims or payments under the 1981 and 1985 Deferred Payment Protocols
What is the Special Currency Basket?
It is a basket of currencies used to determine the Rupee value for deferred payment transactions between India and the erstwhile USSR under the 1981 and 1985 protocols.
When does the new Rupee value take effect?
The revised value of Rs.92.985396 is effective from September 2, 2013, as notified on August 28, 2013.
Do I need to inform my customers about this change?
Yes, AD Category-I banks must bring the contents of this circular to the notice of their constituents concerned.