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Strict compliance of foreign currency norms demanded
March 12, 2003 15:07 IST
The Reserve Bank of India has observed that several banks were not complying with the guidelines issued by it on reporting revaluation of foreign currency assets and liabilities, which sometimes led to errors.
In a circular, the RBI drew the attention of the scheduled commercial banks regarding compilation of data on foreign currency assets and liabilities and revaluation thereof in Annexure A to Form A returns under section 42(2) of the RBI Act, 1934.
The term ''revaluation value'' is the revaluation of gain or loss of foreign currency assets and liabilities arising on account of exchange rate changes between the current reporting Friday and the immediate preceding reporting Friday.
Insisting on a strict compliance with the guidelines, RBI said there is no need to revalue the non-resident rupee liabilities like NRE, NRNR accounts since such deposits are swapped into rupees at notional rates at the time of acceptance of deposits.
Meanwhile, RBI also asked the banks to install a new software for Form A for submission of interest claims from RBI on eligible cash reserve ratio balances on monthly basis with effect from April.
The first such payment for the reporting fortnights ending in April, would be made in May.