What changed
The Rupee value of the Special Currency Basket, used for deferred payment protocols between India and the erstwhile USSR, was revised downward from Rs.86.903352 (effective September 13, 2013) to Rs.83.819978, effective October 17, 2013. This revision was communicated via A.P. (DIR Series) Circular No.64 dated October 22, 2013.
What it means for you
For banks handling transactions under these protocols, the lower Rupee value reduces the Rupee equivalent of the basket, impacting settlement amounts. Lenders must ensure accurate application of the new rate from the effective date to avoid discrepancies in payments or reporting.
What you must do
- Update internal systems and records with the new Special Currency Basket value of Rs.83.819978 effective October 17, 2013.
- Inform all relevant constituents, including corporate clients and branches, about the revised rate.
- Ensure all transactions under the Deferred Payment Protocols from October 17, 2013, use the updated value.
- Maintain compliance with FEMA sections 10(4) and 11(1) as cited in the circular.
Who it affects
AD Category-I banks handling deferred payment transactions with the erstwhile USSR, Corporate clients and constituents involved in trade settlements under these protocols, RBI's foreign exchange and trade settlement monitoring teams
What is the Special Currency Basket and why was its Rupee value revised?
The Special Currency Basket is a reference rate used under the Deferred Payment Protocols between India and the erstwhile USSR for settling trade debts. The Rupee value was revised from Rs.86.903352 to Rs.83.819978 effective October 17, 2013, reflecting changes in currency valuations.
Which banks are required to implement this revision?
All AD Category-I banks, which are authorized to deal in foreign exchange, must implement the revised Rupee value and inform their constituents.
What is the legal basis for this circular?
The circular is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999, and does not override any other permissions or approvals required under law.