What changed
The Rupee value of the Special Currency Basket, used for deferred payment transactions under the 1981 and 1985 protocols with the erstwhile USSR, was revised downward from Rs. 92.985396 to Rs. 90.052266. This change took effect from September 4, 2013, superseding the previous value set on September 2, 2013.
What it means for you
For AD Category-I banks handling these legacy trade settlements, the lower basket value reduces the Rupee equivalent for each unit of the Special Currency Basket, impacting the conversion rates for related payments. Banks must update their systems and advise clients to ensure accurate transaction processing under these protocols.
What you must do
- Update internal systems with the new Special Currency Basket value of Rs. 90.052266 effective September 4, 2013.
- Notify all concerned constituents, including corporate clients dealing with Indo-Russian deferred payment transactions.
- Ensure compliance with FEMA sections 10(4) and 11(1) while processing related payments.
Who it affects
AD Category-I banks handling deferred payment transactions under the 1981 and 1985 protocols, Corporate clients involved in trade settlements with the erstwhile USSR
What is the Special Currency Basket mentioned in this circular?
It is a composite currency unit used to value deferred payment obligations under the 1981 and 1985 protocols between India and the erstwhile USSR, with its Rupee value periodically revised by RBI.
Why was the Rupee value revised from Rs. 92.985396 to Rs. 90.052266?
The revision reflects changes in the underlying currency composition or exchange rates as of August 30, 2013, though the circular does not specify the exact reasons for the adjustment.
Which transactions are affected by this change?
All deferred payment transactions under the mentioned protocols, typically involving trade credits or repayments between Indian entities and the erstwhile USSR, are affected from September 4, 2013.