What changed
The Rupee value of the Special Currency Basket, previously set at Rs.83.564155 from December 12, 2013, has been revised downward to Rs.80.603699 effective May 21, 2014. This revision was made on May 16, 2014, and communicated via this circular.
What it means for you
For banks handling deferred payment transactions under the 1981 and 1985 protocols with the erstwhile USSR, this lower Rupee value reduces the Rupee equivalent of outstanding obligations. Lenders must adjust their accounting and settlement systems to reflect the new rate from the effective date.
What you must do
- Update internal systems with the new Special Currency Basket rate of Rs.80.603699 effective May 21, 2014.
- Notify all concerned constituents, including corporate clients, about the revised rate.
- Ensure compliance with FEMA sections 10(4) and 11(1) while implementing this change.
Who it affects
AD Category-I banks, Corporate clients with deferred payment obligations under the protocols
What is the Special Currency Basket?
It is a basket of currencies used to value deferred payment obligations under the 1981 and 1985 protocols between India and the erstwhile USSR. RBI periodically revises its Rupee value.
When does the new rate take effect?
The revised Rupee value of Rs.80.603699 is effective from May 21, 2014.