What changed
The Rupee value of the Special Currency Basket was revised from Rs.86.513657 (effective November 18, 2013) to Rs.83.564155, with the revision taking place on December 09, 2013 and effective from December 12, 2013. This revision is part of the Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between the Government of India and the erstwhile USSR.
What it means for you
Banks dealing with deferred payment transactions under these protocols must use the new basket value for settlements from December 12, 2013. The lower Rupee value indicates a depreciation of the basket relative to the Rupee, which could affect the Rupee equivalent of outstanding payments.
What you must do
- Update internal systems and records with the revised Rupee value of Rs.83.564155 effective December 12, 2013.
- Notify all concerned constituents, including corporate clients involved in trade with the erstwhile USSR, about the revision.
- Ensure all deferred payment transactions under the protocols are processed using the new basket value from the effective date.
Who it affects
AD Category-I banks handling deferred payment transactions under the protocols, Corporate clients with outstanding payments under the Deferred Payment Protocols, RBI's Foreign Exchange Department
What is the Special Currency Basket?
It is a basket of currencies used to determine the Rupee value for deferred payments under the protocols between India and the erstwhile USSR. RBI periodically revises its Rupee value.
When does the new value take effect?
The revised Rupee value of Rs.83.564155 is effective from December 12, 2013, as per the circular dated December 16, 2013.
Do I need to take any action for past transactions?
No, the revision applies only to transactions from the effective date. Past transactions settled before December 12, 2013, remain unaffected.