What changed
The Rupee value of the Special Currency Basket was revised from Rs.90.052266 (as per previous circular) to Rs.86.903352, with effect from September 13, 2013. This change applies to the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between India and the erstwhile USSR.
What it means for you
Banks handling deferred payment transactions under these protocols must use the new basket value for settlements from September 13, 2013. The lower value indicates a change in the basket's valuation, impacting trade finance and legacy Soviet-era debt servicing.
What you must do
- Update internal systems and FX rates with the new Special Currency Basket value of Rs.86.903352 effective September 13, 2013.
- Notify all concerned constituents, including corporate clients dealing with deferred payments under the India-USSR protocols.
- Ensure all transactions from September 13, 2013 use the revised rate for accurate settlement.
- Review and adjust any pending or future payment instructions to reflect the updated basket value.
Who it affects
AD Category-I banks, Corporate clients with deferred payment obligations under India-USSR protocols, Trade finance and forex operations teams
What is the Special Currency Basket and why does its value change?
The Special Currency Basket is a reference rate used for settlements under the Deferred Payment Protocols between India and the erstwhile USSR. Its value is revised periodically by RBI based on exchange rate movements.
Does this circular affect all forex transactions?
No, it applies only to transactions under the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985. Other forex transactions are not impacted.
What should banks do if they have already processed transactions at the old rate after September 13?
The circular does not provide specific guidance on this. Banks should refer to the circular's instructions and may need to consult with RBI for any discrepancies.