| General |
(i)
Authorised dealers have recourse to Reserve Bank to sell/buy
U.S. dollars to the extent the latter is prepared to transact
in the currency at a given point of time.
(ii)
Reserve Bank will buy/sell only U.S. dollar. It will not
ordinarily buy/sell any other currency from/to authorised
dealers.
(iii)
Reserve Bank will quote its spot buying rate for US dollar
to any authorised dealer who makes a specific request
to Reserve Bank Dealing Room in the Department of External
Investments & Operations (DEIO), Central Office, Mumbai.
The rate quoted by the Dealing Room will hold good only
for the specific transaction and is subject to change
unless deal is concluded immediately. |
| NOTE |
| : Funding of or absorbing
excess liquidity in ACU dollar account is arranged by
Reserve Bank in accordance with the procedure laid down
in Memorandum ACM. |
Settlement
of Rupee Leg |
| The settlement of Rupee leg of the
transactions can be effected at the request of authorised
dealer at any of the Reserve Bank Offices (Deposit Accounts
Department) at Ahmedabad, Bangalore, Calcutta, Chennai,
Kanpur, Mumbai, Nagpur and New Delhi. While concluding
the deal, the authorised dealer should clearly indicate
the office of Reserve Bank at which settlement of the
Rupee leg is desired. |
Value
Date |
| The contract for purchase/delivery
of U.S. dollar will be entered into by Reserve Bank on
days on which the dealing room (DEIO) of Reserve Bank
is open for business. No transaction in foreign currency
will be entered into by Reserve Bank on Saturdays. The
value date for spot as well as forward delivery should
be in conformity with the national and international practice
in this regard. |
| Reporting
of Transactions |
| All transactions
with Reserve Bank should be reported in R Return. Form
A2 need not be completed in respect of sale of foreign
currency to Reserve Bank. |
Minimum
and Multiple Requirements |
| The purchase and sale of U.S. dollar
will be made by Reserve Bank ordinarily in multiple of
U.S.$ 500,000 with the minimum of U.S.$ 1 million. |
| Confirmation
of Purchase/Sale from/to Reserve Bank |
| Confirmation of the
sale and purchase of U.S. dollar to/from the Reserve Bank
may be sent immediately in the form RBM 1 and RBM 2 respectively
to the Back-up Section of DEIO, Central Office, Reserve
Bank of India, Mumbai. The confirmation may be sent by
hand delivery, telex, or fax. |
| Payment
of Rupee Value against Sale of Foreign currencies to
Reserve Bank |
| The payment of the rupee value will
be made by the concerned office of Reserve Bank (cf. paragraph
4.2) to the current account of the authorised dealer on
the appropriate value date without waiting for the credit
intimation from Reserve Bank's overseas correspondent.
If the foreign currency amount is not delivered to the
overseas correspondent of Reserve Bank on the value date,
interest will be charged at the Reserve Bank Rate on the
rupee value credited to the account of the authorised
dealer for the number of days of default. In order that
the overdue interest may be recovered in such cases automatically
by debit to their account with the concerned office of
Reserve Bank, authorised dealers should lodge a suitable
standing authority with Reserve Bank. Cases of undue delay
will attract penalties, apart from overdue interest. |
Submission
of Information about Principals by Authorised Dealers'
Overseas Correspondents |
| Authorised dealers should leave standing
instructions with their overseas correspondents to indicate
clearly the name of the principal (i.e. the name of the
Indian office/branch of the authorised dealer) on whose
behalf the U.S. dollar amount is delivered to Reserve
Bank's account with the Federal Reserve Bank of New York,
New York. |
