Regional Trading Agreements
Historial Exchange Rate Regime of Asian Countries
 
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  Untitled Document
India
  During the period 1950-1951 until mid-December 1973, India followed an exchange rate regime with Rupee linked to the Pound Sterling, except for the devaluations in 1966 and 1971. When the Pound Sterling floated on June 23, 1972, the Rupee’s link to the British units was maintained; paralleling the Pound’s depreciation and effecting a de facto devaluation.

On September 24, 1975, the Rupee’s ties to the Pound Sterling were broken. India conducted a managed float exchange regime with the Rupee’s effective rate placed on a controlled, floating basis and linked to a “basket of currencies” of India’s major trading partners.

In early 1990s, the above exchange rate regime came under severe pressures from the increase in trade deficit and net invisible deficit, which led the Reserve Bank of India (RBI) to undertake downward adjustment of Rupee in two stages on July 1 and July 3, 1991. This adjustment was followed by the introduction of the Liberalized Exchange Rate Management System (LERMS) in March 1992 and hence the adoption of, for the first time, a dual (official as well as market determined) exchange rate in India. However, such system was characterized by an implicit tax on exports resulting from the differential in the rates of surrender to export proceeds.

Subsequently, in March 1993, the LERMS was replaced by the unified exchange rate system and hence the system of market determined exchange rate was adopted. However, the RBI did not relinquish its right to intervene in the market to enable orderly control. (Singh, 2000)

In addition, the foreign exchange market of India was characterized by the existence of both official and black market rates with median premium. However, such black market premium steadily declined during the following decades until 1993.

Major sources of reference include:
1) World Currency Yearbook (WCY)
2) IMF Annual Report on Exchange Arrangement and Exchange Restriction (IMF)
3) Singh (2000) “Balance of Trade, Exchange Rate and Trade Policy Regimes in India: Some Issues and Policy Perspective”, Indian Economic Journal, 48(1), pages 61-83.
   
 
Date
Changes to the exchange rate regime
Rupees per U.S. Dollar
6 June 1966The India Rupee was devalued from an Official Rate of Rs4.76 to Rs7.50 per U.S. Dollar. (WCY1990-1993, p.432) The rate listed since was the Official Rate. 7.500 
28 May 1971The Rupee was partially devalued, as taxes were placed on travel abroad, creating a Resident Travel Rate. (WCY1990-1993, p.432)  
23 August 1971Following the floating of the U.S. Dollar on 08/15/1971, India announced that the Official Rate of Rs7.50 per American unit would remain unchanged, thus effecting a de facto devaluation and severing the Rupee's link to the Pound Sterling. (WCY1990-1993, p.432) 7.500 
February 1973Following the devaluation of the U.S. Dollar, the theoretical Official Rate of the Rupee was realigned to Rs6.55 per U.S. Dollar, based on the Indian currency's unchanged gold content. (WCY1990-1993, p.432) 6.550 
31 December 1974Effective Rate: 8.08; Travel Rate: 9.29. (WCY 1984, p. 355) 6.550 
1 January 1975Following the expiration of the bilateral payments arrangements with Bangladesh, settlements with that country were placed on a convertible currency basis. (IMF 1976, p.230)  
30 January 1975The Reserve Bank granted general permission to the public for (1) sending out of India not more than two pieces each of the development-oriented design coins of Rs 50, Rs 10, and 10 paise for the purpose of making noncommercial giftsof such soins to nonresidents, and (2) for taking out two pieces each of Rs 50 and Rs 10 by passengers going abroad, for purposes of presentation. (IMF 1976, p.231)   
2 July 1975The middle rate for the pound sterling was changed from Rs 18.90=£ 1 to Rs 18.60=£ 1; the middle rate had remained unchanged since July 1972, The Reserve Bank's buying and selling rates for sterling were revised from Rs 18.75 and Rs 18.85, respectively, per £ 1to Rs 18.55 and Rs 18.65 per £ 1. The central rate remained unchanged at Rs 18.9677=£ 1, and India continued to avail itself of wider margins. (IMF 1976, p.230)  
25 August 1975The Ministry of Finance announced additional measures to attract remittances from Indians abroad. (1) The opening of nonresident accounts in selected convertible currencies would be allowed. (2)Nonresident Indians would be allowed to invest in Indian industry without undertaking that they would repatriate neither capital nor dividends. (3) The entire dividend income from units of the Unit Trust of India purchased by nonresident Indians would be made tax free. (4) Indian professionals going abroad or already staying abroad would be persuaded to enter into a contract with the Governemnt of India agreeing to remit 10 per cent of their earnings to India through legal channels; this would be applicable to persons earning in excess of US$12,000 a year. (IMF 1976, p.230)  
1 September 1975The Reserve Bank was prepared to purchase deutsche mark and Japanese yen forward also for six months' delivery; previously, this facility was available only for one, two, and three months' forward delivery. In addition, forward sales of sterling, U.S. dollars, deustche mark, and Japanese yen by authorized dealers ot the Reserve Bank against their spot purchases of these currencies became permissible. (IMF 1976, p.230)  
15 September 1975Indians resident abroad, who had opened a Nonresident (External) Account by remitting funds from abroad throug banking channels and then returned to India, could, on the merits of the case, obtain permission from the Reserve Bank (1) to reconvert the balance into foreign currency when leaving India within three years of their return; (2) to reconvert the resident account into a Nonresident (External) Account after departure from India within three years, provided no local rupee credits had been made into the acout in the meantime; or (3) to open a new Nonresident (External) Account, after departure from India within three years (up to the value of the balance at the time of initial conversion of the accout into a Resident Account). The facilities were not available to Indians employed abroad with and Indian-owned organization. (IMF 1976, p.230)   
24 September 1975The Rupee's ties to the Pound Sterling were broken, and the Indian unit's Effecitive Rate was placed on a controlled, floating basis linked within margins of 5% to a "basket of currencies" that included the Japanese Yen, the West German Mark and the U.S. Dollar. The fluctuation range for the Effective Travel Rate was revised, as the travel taxes of 10%-15% were unified into a 12.5% rate. (WCY1990-1993, p.432) The rate listed since was the Effective Rate.   
28 October 1975Authorized dealers were required to obtain the prior approval of the Reserve Bank before granting loans or overdrafts to nonresident persons of Indian nationality or of Indian origin against the security of fixed deposits created solely out of remittances from abroad (including balances held in Nonresident (External) Accounts or Foreign Currency (Nonresident) Accounts); the authority to grant such credit up to Rs 20,000, subject to certain conditions, was revoked. (IMF 1976, p.230)   
1 November 1975A new type of nonresident account, Foreign Currency (Nonresident) Accouts, was introduced. Nonresident persons of Indian naionality or origin could open accounts in designated foreign currencies (pounds sterling and U.S. Dollars) for remittance of their savings from abroad. Interest was paid in the currencies in which the accounts were held and was free of Indian income tax. The balances, including interest, were repatriable at any time in the same currencies, without reference to the Reserve Bank. Balances could only be held as term deposits, for periods ranging from 91 days to 61 months. The exchange risk was borne by the Reserve Bank. The opening of, and operations on, the accounts were governed by the Nonresident (External) Accounts Rules, 1970. The facillities of this Foreign Currency (Nonresident) Accounts scheme were not available to persons resident in Bilateral Account Countries. (IMF 1976, p.230) The Asian Clearing Union began operations. At the option of the payor or payee, payments and receipts for current transactions (other than those relating to petroleum, natural gas, and their products) to and from Bangladesh, Iran, Pakistan, and Sri Lanka could be settled in Asian monetary units, one unit being equibalent to SDR 1. The arrangements were not applicable to settlements between India and one member of the Union, Nepal. (IMF 1976, p.230) The Reserve Bank stood ready to sell Asian monetary units spot to authorized dealers and to purchase them from authorized dealers for spot and forward delivery for periods up to 3, 6, and 9 months (extenable up to 12 months). The value of the unit for the first accounting period in November 1975 was set at a middle rate of 1 Asian monetary unit = Rs 10.4991. The charge on forward purchases of the unit by the Reserve Bank was Rs 0.02 per unit for the three months. Authorized dealers were permitted to extend forward cover to exporters in Asian monetary units where export orders were expressed in these units or in the currency of the importing member country of the Clearing Union. (IMF 1976, p.234)   
1 November 1975A new type of nonresident account, Foreign Currency (Nonresident) Accouts, was introduced. Nonresident persons of Indian naionality or origin could open accounts in designated foreign currencies (pounds sterling and U.S. Dollars) for remittance of their savings from abroad. Interest was paid in the currencies in which the accounts were held and was free of Indian income tax. The balances, including interest, were repatriable at any time in the same currencies, without reference to the Reserve Bank. Balances could only be held as term deposits, for periods ranging from 91 days to 61 months. The exchange risk was borne by the Reserve Bank. The opening of, and operations on, the accounts were governed by the Nonresident (External) Accounts Rules, 1970. The facillities of this Foreign Currency (Nonresident) Accounts scheme were not available to persons resident in Bilateral Account Countries. (IMF 1976, p.230) The Asian Clearing Union began operations. At the option of the payor or payee, payments and receipts for current transactions (other than those relating to petroleum, natural gas, and their products) to and from Bangladesh, Iran, Pakistan, and Sri Lanka could be settled in Asian monetary units, one unit being equibalent to SDR 1. The arrangements were not applicable to settlements between India and one member of the Union, Nepal. (IMF 1976, p.230) The Reserve Bank stood ready to sell Asian monetary units spot to authorized dealers and to purchase them from authorized dealers for spot and forward delivery for periods up to 3, 6, and 9 months (extenable up to 12 months). The value of the unit for the first accounting period in November 1975 was set at a middle rate of 1 Asian monetary unit = Rs 10.4991. The charge on forward purchases of the unit by the Reserve Bank was Rs 0.02 per unit for the three months. Authorized dealers were permitted to extend forward cover to exporters in Asian monetary units where export orders were expressed in these units or in the currency of the importing member country of the Clearing Union. (IMF 1976, p.234)   
1 November 1975A new type of nonresident account, Foreign Currency (Nonresident) Accouts, was introduced. Nonresident persons of Indian naionality or origin could open accounts in designated foreign currencies (pounds sterling and U.S. Dollars) for remittance of their savings from abroad. Interest was paid in the currencies in which the accounts were held and was free of Indian income tax. The balances, including interest, were repatriable at any time in the same currencies, without reference to the Reserve Bank. Balances could only be held as term deposits, for periods ranging from 91 days to 61 months. The exchange risk was borne by the Reserve Bank. The opening of, and operations on, the accounts were governed by the Nonresident (External) Accounts Rules, 1970. The facillities of this Foreign Currency (Nonresident) Accounts scheme were not available to persons resident in Bilateral Account Countries. (IMF 1976, p.230) The Asian Clearing Union began operations. At the option of the payor or payee, payments and receipts for current transactions (other than those relating to petroleum, natural gas, and their products) to and from Bangladesh, Iran, Pakistan, and Sri Lanka could be settled in Asian monetary units, one unit being equibalent to SDR 1. The arrangements were not applicable to settlements between India and one member of the Union, Nepal. (IMF 1976, p.230) The Reserve Bank stood ready to sell Asian monetary units spot to authorized dealers and to purchase them from authorized dealers for spot and forward delivery for periods up to 3, 6, and 9 months (extenable up to 12 months). The value of the unit for the first accounting period in November 1975 was set at a middle rate of 1 Asian monetary unit = Rs 10.4991. The charge on forward purchases of the unit by the Reserve Bank was Rs 0.02 per unit for the three months. Authorized dealers were permitted to extend forward cover to exporters in Asian monetary units where export orders were expressed in these units or in the currency of the importing member country of the Clearing Union. (IMF 1976, p.234)   
5 December 1975The middle rate for sterling was changed to Rs 18.1284=£ 1. (IMF 1976, p.234)   
5 December 1975The middle rate for sterling was changed to Rs 18.1284=£ 1. (IMF 1976, p.234)   
29 December 1975The Reserve Bank issued a clarification fo the tax liabilities attaching to Nonresident (External) Accounts and Foreign Currency (Nonresident) Accounts. Both types of account were exempt from income tax in respect of interest accruing on the balances and wealth tax in respect of the balances held, but not from either estate duty of gift tax. (IMF 1976, p.234)   
31 December 1975Travel Rate: 10.06. (WCY 1984, p. 355) 8.940 
8 March 1976The middle rate of sterling was changed to Rs 17.75 = £ 1. (IMF 1977, p.229)   
11 March 1976The middle rate of sterling was changed to Rs 17.25 = £ 1. (IMF 1977, p.229)   
3 April 1976The middle rate of sterling was changed to Rs 16.90 = £ 1. (IMF 1977, p.229)   
23 April 1976The middle rate of sterling was changed to Rs 16.55 = £ 1. (IMF 1977, p.231)   
29 May 1976The middle rate of sterling was changed to Rs 16.00 = £ 1. (IMF 1977, p.231)   
21 September 1976The middle rate of sterling was changed to Rs 15.40 = £ 1. (IMF 1977, p.231)   
29 September 1976The middle rate of sterling was changed to Rs 14.70= £ 1. (IMF 1977, p.231)   
8 November 1976The Reserve Bank announced the resumption of forward trading in sterling, U.S. Dollars, deustche mark, and yen, which had been suspended on October 26. The forward purchaes in sterling were resumed at the rates prevailiing at the time of their suspension on October 26. (IMF 1977, p.231)   
24 December 1976The middle rate of sterling was changed to Rs 15.20= £ 1. (IMF 1977, p.232)  
31 December 1976Travel Rate: 9.99. (WCY 1984, p. 355) 8.880 
24 May 1977The Reserve Bank directed authorized dealers to discontinue the rediscounting of of foreign currency usance bills abroad. (IMF 1978, p.205)  
15 June 1977The obligation to surrender to an authorized dealer any foreign exchange held by persons resident in India was extended to all currencies except those of Nepal and Bhutan. (IMF 1978, p.205)  
16 August 1977The Reserve Bank's procedures governing forward purchases of pounds sterling, U.S. Dollars, deutsche mark, and Japanese yen from authorized dealers were revised. Under the new system, the Bank would purchase pouds sterling spot and also for forward delivery on any day during the first month, the second month and so on up to the ninth month. The U.S. Dollar, the deustche mark, and the Japanese yen would also be purchased spot as well as forward for delivery on any day during the first month, the second month, and so on up to the sixth month. (IMF 1978, p.205)  
1 September 1977The Foreign Exchange Regulation Act, 1973 was extended to the State of Sikkim. Accordingly, residents of Sikkimg (other than foreign nationals who are temporarily resident there) who own foreign exchange or foreign securities or immovable property outside India were required to declare to the Reserve Bank particulars of all such holdings before November 1. The holders of foreign currency balances, except for certain exempted categories, were required to surrender such balances to an authorized dealer in foreign exchange before December 1. (IMF 1978, p.206)  
29 September 1977Blocked accounts of Indian emigrants were redesignated ordinary nonresident accounts. (IMF 1978, p.206)  
1 November 1977The Reserve Bank introduced a new scheme entitled Returning Indians Foreign Exchange Entitlement Scheme, for persons of Indian nationality or origin returning to India for permanent settlement. Under the scheme, such persons could apply for release of 25 per cent of the foreign exchange brought in or remitted to India through normal banking channels, and also of the balances held in rupee Nonresident (External) Accounts and Foreign Curreny Nonresident Accounts, for specified purposes for which foreign exchange was not normally made available. Entitlements under the scheme would remain valid for ten years from the date of return of the head of the family to India. (IMF 1978, p.206) India adjusted the exchange rates of the rupee against the pound sterling. The new buying and selling rates were Rs 15.7 = £ 1 and Rs 15.8 = £ 1, respectively. (IMF 1978, p.206)  
31 December 1977Travel Rate: 9.24. (WCY 1984, p. 355) 8.210 
1 January 1978Transactions between India and Hungary were placed on a convertible currency basis. (IMF 1979, p.206)  
24 May 1978The spot buying and selling rates of the rupee in terms of the pound sterling were adjusted to Rs 15.30 and Rs 15.40, respectively, per £ 1. The forward rates from one to nine months were adjusted accordingly. During the course of the year the spot buying and selling rates and the forward rates were adjusted on a number of occasions. On December 20 the spot rates were Rs 16.45 buying, and Rs 16.55 selling, per £ 1. (IMF 1979, p.207)  
1 June 1978The Reserve Bank delegated additional powers to authorized dealers in respect of payments for commission on exports covered by irrevocable letters of credit, advertising expenses (where the limit was raised from US$500 to US$1,000 in any calender year), and sundry trade-related remittances. Authorized dealers were permitted to effect remittances on account of private imports up to a limit of Rs 500 c.i.f. (IMF 1979, p.207)  
23 July 1978Exchange bureaus and authorized money changers were authorized to sell foreign currency notes and coin up to the equivalent of Rs 200 to travelers proceeding abroad except to Bangladesh, Bhutan, and Nepal; travelers visiting Bangladesh were entitiled to Rs 100. (IMF 1979, p.207)  
1 September 1978Following the expiry of the rupee trade agreement between India and Afghanistan, transactions with Afganistan were placed on a convertible currency basis. (IMF 1979, p.207) The Reserve Bank extended its facilities for forward purchases of U.S. Dollars from up to 6 months to up to 12 months. The forward margins on sterling transactions were raised slightly. The Reserve Bank limited to 1 month the authorized dealers' facility for forward delivery of sterling and U.S. Dollars against spot purchases of these currencies from their overseas branches and for correspondents. The Reserve Bank extended the scope of the long-term forward cover scheme (in operation since 1974) to include additional engineering items. (IMF 1979, p.207)   
5 October 1978Authorized dealers were permitted to open letters of credit in a convertible currency against imports from Pakistan, subject to normal exchange control regulations being observed. (IMF 1979, p.207)   
31 December 1978Travel Rate: 9.21. (WCY 1984, p. 355)  
31 December 1978Travel Rate: 9.21. (WCY 1984, p. 355) 8.190 
1979The Effective Travel Rate was abolished and replaced by a flat tax of Rs50 or Rs100 (raised to Rs150 or Rs300 in 1989), depending on destination. (WCY1990-1993, p.432)   
1 January 1979The bilateral payments agreement with Bulgaria was terminated and settlements were placed on a convertible currency basis. (IMF 1980, p.198)  
13 January 1979The Reserve Bank announced that with effect from November 25, 1978 a rate for the ruble of rub 1 = Rs 10 had been established (instead of rub 1 = Rs 8.333) for commercial contracts which had been or might be denominated in rubles, except that in respect of commercial contracts concluded prior to November 24, 1978 then new exchange rate would apply only to the outstanding contract value, as well as to the outstanding payment obligations on that date. The ruble-rubee rate would be subject to revision from time to time; there would be no gold clause in any future contracts between parties in the two countries. With effect from June 16, 1979 and August 11, 1979 the ruble-rupee exchange rate was adjusted to rub 1=Rs 9.6938 and rub 1= Rs 9.9974, respectively. (IMF 1980, p.198)  
30 January 1979The exchange rate margins were increased from 2.5 per cent on either side of the middle rate to 5 per cent. (IMF 1980, p.198)   
13 March 1979The spot buying and selling rates for the pound sterling were changed to correspond to a middle rate of Rs 16.80 per £ 1. Thereafter, ther spot rates were changed frequently and on December 4, 1979 the middle rate was Rs 17.80 per £ 1. Forward rates fjor one to nine months were adjusted accordingly. (IMF 1980, p.198)   
20 June 1979Authorized dealers were permitted, without prior approval, to allow remittances of dividends on equity shares to nonresidents where the equity shares would not exceed Rs 500,000 at face value of 25 per cent of the total issued equity capital, whichever was less. (IMF 1980, p.198)   
7 August 1979Foreign persons of Indian origin, and their foreign-born wives, resident in India for employment of a specified duration or for carrying out an assignment of a duration not exceeding three years would be eligible for exemption from the requirement of surrender fo foreign exchange and might, in the same way as foreign nationals of non-Indian origin, maintain accounts in foreign currency, hold foreign securities, etc. (IMF 1980, p.199)   
8 August 1979Authorized dealers were permitted, without prior approval, to remit registration fees for medical, scientific, and technological conferences up to a limit of US$300. Authorized dealers might release US$500 to students at graduate or postgraduate levels provided they had secured a scholarship, an assistantship, etc., to meet the entire tuition and maintenance expenses. (IMF 1980, p.199) Authorized dealers were permitted to sell foreign exchange up to Rs 300 and Rs 400, respectively, to Indian nationals and persons of Indian origin resident in India, for travel to Bangladesh and Sri Lanka once in a calendar year. (IMF 1980, p.199)   
26 September 1979The scope of the facility available to Indian nationals and persons of Indian origin returning to India with a view to securing employment in India ws extended to include most persons of Indian origin, irrespective of qualifications and background. In addition, the reconversion facility was extended from three to five years. (IMF 1980, p.199)   
31 December 1979 7.910 
9 January 1980The spot buying and selling rates for the pound sterling in terms of the rupee were changed to correspond to a middle rate of Rs 18.00 per £ 1. Thereafter, the rates were changed on a number of occasions, and on November 29, 1980, the middle rate was Rs 18.85 per £ 1. Forward rates for one to nine months were adjusted accordingly. (IMF 1981, p.212)  
5 April 1980The ruble-rupee exchange rates were revised to rub 1=Rs 9.6378. (IMF 1981, p.212)  
30 May 1980With effect from June 12, the practice of basing rates for spot and forward purchases of deustche mark, Japanese yen, and U.S. dollars on the previous working day's London closing rates was modified and, henceforth, would be based on the latest available rates and trends in international foreign exchange markets. The rates would be announced every day and may be changed at any time, if the need arose. (IMF 1981, p.212)  
26 September 1980Authorized dealers were instructed to keep specified quotations for ready clean telegraphic transfers in various currencies, other than the pound sterling, with maximum spreads varying from 1 per cent to 2.5 per cent from the mean telegraphic transfer rate. (IMF 1981, p.213)  
10 November 1980The ruble-rupee exchange rates were revised to rub 1=Rs 9.3407. (IMF 1981, p.212)  
31 December 1980 7.930 
1 January 1981The trade and payments agreement between Indian and Romania was renewed for a period of five years. Payments for transactions between the two countries would continue to be made in nonconvertible Indian rupees. (IMF 1982, p.230) The trade and payments agreement between Indian and Poland was renewed for a period of five years. Payments for transactions between the two countries would continue to be made in nonconvertible Indian rupees. (IMF 1982, p.230) The trade and payments agreement between Indian and the German Democratic Republic (GDR) was renewed for a period up to December 31, 1985. Payments for transactions between the two countries would continue to be effected in nonconvertible Indian rupees. (IMF 1982, p.231)  
12 February 1981Authorized dealers were allowed to open rupee accounts on their books in the names of their branches or correspondents in Pakistan and the People's Republic of China without prior reference to the Reserve Bank. Such accounts should be used to finance permissible transactions in terms of provisions contained in the Exchange Control Manual and other relevant instructions by the Reserve Bank. Authorized dealers must, however, seek directions from the Reserve Bank before opening accounts in the names of branches of Pakistani and Chinese banks operating outside Pakistan and the People's Republic of China, respectively. (IMF 1982, p.231)  
3 March 1981Authorized dealers were required to obtain the approval of the Reserve Bank before opening letters of credit for financing purchases of goods abroad for on-sale abroad. To expedite business, authorized dealers were permitted to approve such transactions subject to specified conditions. (IMF 1982, p.231)  
28 July 1981The Reserve Bank advised its offices to apply stricter scrutiny concerning the release of foreign exchange for foreign business travel other than export promotion. (IMF 1982, p.232)  
22 September 1981It was announced that with effect from October 1, 1981, the Reserve Bank would change its exchange rate quotations from a "ready" or "cash" basis to a "spot" basis (delivery after two business days); however, in order to help authorized dealers and customers, quotations on a "cash" basis would be applied in exceptional cases and for valid reasons upon applicaitons from authorized dealers. (IMF 1982, p.232)  
15 October 1981A license to deal in foreign exchange in India has been granted by the Reserve Bank to Banque de l'Indochine et de Suez (INDOSUEZ), France, in terms of which the Bank could take all types of foreign exchange transactions in all permissible currencies at its branch in Bombay. (IMF 1982, p.232)  
31 December 1981 9.100 
6 February 1982The "notional" exchange rates at which authorized dealers are required to sell to and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresidents) Accounts were changed to £ 1 = Rs 16.50 and US$1= Rs 8.75. (IMF 1983, p.252)  
3 March 1982The Export-Import Bank of India was authorized to undertake, in all permitted currencies, specified types of foreign exchange transactions incidental to the Bank's normal operations. (IMF 1983, p.252)  
22 March 1982The Export-Import Bank of India was authorized to undertake, in all permitted currencies, specified types of foreign exchange transactions incidental to the Bank's normal operations. (IMF 1983, p.252)  
22 March 1982The Reserve Bank suspended, until further notice, spot purchases of deutsche mark acquired by authorized dealers from their overseas branches, head offices, or correspondents for the purpose of funding their rupee accounts in India. (IMF 1983, p.252)   
7 April 1982The floor on buying rates and the ceiling on selling rates for U.S. dollar notes were changed to Rs 9.00 =US$1 and Rs 9.80=U.S. $1, respectively. (IMF 1983, p.252)  
21 June 1982The floor on buying rates and the ceiling on selling rates for U.S. dollar notes were changed to Rs 9.20 =US$1 and Rs 9.60=U.S. $1, respectively. (IMF 1983, p.253)  
25 June 1982The ruble-rupee exchange rate was revised to rub 1= Rs 9.6997. The floor on buying rates and the ceiling on selling rates for U.S. dollar notes were changed to Rs 9.00 =US$1 and Rs 9.80=U.S. $1, respectively. (IMF 1983, p.253) The rupee balue of the special currency basket, applicable to contracts concluded under the Deferred Payments Protocol dated April 30, 1981 between the Government of India and the U.S.S.R., relating to deliveries of machinery and equipment from U.S.S.R. to India, was revised to Rs 10.2518. The floor on buying rates and the ceiling on selling rates for U.S. dollar notes were changed to Rs 9.00 =US$1 and Rs 9.80=U.S. $1, respectively. (IMF 1983, p.253)  
30 September 1982The floor on buying rates and the ceiling on selling rates for U.S. dollar notes were changed to Rs 9.40 =US$1 and Rs 9.80=U.S. $1, respectively. (IMF 1983, p.253)  
17 November 1982The exchange rates at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in foreign currency nonresident account scheme were changed to £ 1 = Rs 16.00 and US$1 =Rs 9.15. (IMF 1983, p.253)  
19 November 1982The floor on buying rates and ceiling on selling rates for U.S. Dollar notes were changed to Rs 9.50 =US$1 and Rs 9.90 = US $1, respectively. (IMF 1983, p.253)  
31 December 1982 9.630 
1 January 1983The ruble-rupee exchange rate was revised to rub 1=Rs 10.0176. The rupee value of the special currency basket used for valuation of contracts under the Deferred Payments Protocol dated 04/31/1981 between the Government of India and the U.S.S.R. , for delivery of machinery and equipment from the U.S.S.R. to India, was revised to Rs 10.5878. (IMF 1984, p.254)   
21 January 1983The "notional" exchange rate for the pound sterling at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresident) Accounts was changed to £1= Rs15.50. (IMF 1984, p.254)   
31 January 1983The "notional" exchange rate for U. S. dollar at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresident) Accounts was changed to US$1= Rs9.75. (IMF 1984, p.254)   
21 February 1983The "notional" exchange rate for the pound sterling at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresident) Accounts was changed to £1= Rs15.25. (IMF 1984, p.254)  
5 April 1983The "notional" exchange rate for the pound sterling at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresident) Accounts was changed to £1= Rs14.50. (IMF 1984, p.254)  
3 June 1983The "notional" exchange rate for the pound sterling at which authorized dealers were required to sell and repurchase from the Reserve Bank proceeds of deposits in Foreign Currency (Nonresident) Accounts was changed to £1= Rs15.50. (IMF 1984, p.254)  
31 December 1983 10.490 
5 January 1984The exchange rates for purchases and sales by authorized dealers under the Foreign Currency Nonresident Accounts (FCNR) scheme were set at Rs 15=£1 and Rs10=US$1, respectively. (IMF 1985, p.265)  
4 June 1984The exchange rate for purchases and sales by authorized dealers under the FCNR scheme was changed to Rs11=US$1. (IMF 1985, p.265)  
29 October 1984A new exchange rate of Rs12=US$1 was introduced for purchases and sales of U.S. dollars by authorized dealers under the FCNR scheme. (IMF 1985, p.265)  
31 December 1984 12.450 
24 January 1985Maintenance of ECU-denominated balances and positions abroad by authorized dealers was permitted, and Indian importers and exporters were allowed to use the ECU as a unit of account in concluding contracts and in settlement of transactions with their overseas counterparts. (IMF 1986, p. 289)  
1 March 1985It was announced that the Reserve Bank would henceforth purchase the pound sterling at the revised notional rate of £1= Rs14, and the U.S. dollar at US$1=Rs 13, under the Foreign Currency Nonresident Accounts (FCNR) Scheme. (IMF 1986, p. 289)  
11 April 1985A revised notional rate of £1=Rs 15 was introduced at which the Reserve Bank would purchase pounds sterling under the FCNR scheme. (IMF 1986, p. 289)  
10 July 1985A revised notional rate of £1=Rs 16 was introduced at which the Reserve Bank would purchase pounds sterling under the FCNR scheme. (IMF 1986, p. 289)  
1 August 1985The Reserve Bank began to announce, on a daily basis, its buying and selling rates for the currencies of the member countries of the Asian Clearing Union (ACU). (IMF 1986, p. 289)  
16 October 1985It was announced that the Reserve Bank would henceforth purchase pounds sterling under the FCNR Scheme, at the revised notional rule of £1=Rs 17, and the U.S. dollar at US$1=Rs 12. (IMF 1986, p. 289)  
31 December 1985 12.170 
31 December 1986 13.120 
2 February 1987The Reserve Bank of India started selling U.S. Dollars for spot delivery to authorized dealers subject to the condition that (1) the Reserve Bank would sell a minimum of US$250, 000 (subsequently reduced to US$100,000 with effect from 07/21/1987) and higher amounts in multiples of US$25,000 without a ceiling; and (2) the U.S. dollars purchased from the Reserve Bank would only be used to settle specifically approved transactions or commitments in U.S. dollars, such as remittances to be made on account of imports, dividends, profits, royealty, and technical know-how fees, from India in conformity with existing Exchange Control Regulations. (IMF 1988, p.256)  
15 October 1987Indians receiving foreign exchange for travel were required to pay a Foreign Exchange Conservation Tax at 15% of the Rupee equivalent. As a result, a Travel Rate was again established. (WCY1990-1993, p.432)  
31 December 1987Travel Rate: 14.81(WCY1988-1989, p.443) 12.880 
31 December 1988Travel Rate: 17.191 (WCY1990-1993, p.436) 14.949 
31 December 1989Travel Rate: 19.590. (WCY1990-1993, p.436) 17.035 
31 December 1990Travel Rate: 20.784. (WCY1990-1993, p.436) 18.073 
1 July 1991The Rupee was devalued by 9.29%. (WCY1990-1993, p.432) 23.120 
3 July 1991The Rupee was cut by 11.3%, bringing the rate to Rs25.95 per U.S. Dollar. (WCY1990-1993, p.432)  25.950 
1 March 1992A dual rate system was created. The Effective Rate would govern only certain import payments, 40% of export and invisibles receipts and official grants and IMF transactions. All other dealings would come under an Interbank Free Rate determined by supply and demand in the interbank market. (WCY1990-1993, p.432)  
27 March 1992Authorized dealers were permitted to offer forward cover for all transactions permitted under the exchange control regulations. (IMF 1993, p.241)  
1 June 1992The travel tax and the Foreign Exchange Conservation Tax were abolished, eliminating the Travel Rate. (WCY1990-1993, p.432)  
1 March 1993The rate system was unified at the Interbank Free Rate and the Rupee was fully convertible. (WCY1990-1993, p.432). All foreign exchange transactions would be conducted by authorized dealers at market-determined rates. Authorized dealers would not be required to transfer to the Reserve Bank any portion of foreign exchange that was surrendered to them by exporters of goods and services. (IMF 1994, p. 235) The rate listed since was the Interbank Free Rate.   
1 April 1993The Reserve Bank ceased to provide exchange rate guarantees on new foreign currency nonresident accounts with a maturity of less than one year. (IMF 1994, p. 235)  
1 October 1993The Reserve Bank ceased to provide exchange rate guarantees on new foreign currency nonresident accounts with a maturity of less than two years. (IMF 1994, p. 235)  
31 December 1993 31.380 
31 December 1994 31.370 
30 December 1995 35.180 
12 June 1998Authorized dealers were permitted to provide forward cover to foreign institutional investors in respect of their fresh investments in India in equity. Authorized dealers also were allowed to extend forward cover facility to foreign institutional investors to cover the appreciation in the market value of their existing investments in India. This facility has also been extended to NRIs and OCBs to cover their portfolio equity investments. Authorized dealers are allowed to extend forward cover to hloders of Foreign Currency Nonresident / Noresident Foreign Exchange accounts to enable them to hedge balances in such accounts. (IMF 1999, p. 414)  
20 August 1998Authorized dealers were allowed to offer forward cover facility to foreign institutional investors to the extent of the value of their investments. (IMF 1999, p. 415)  
21 March 1999Authorized dealers were allowed to offer forward exchange cover to foreign institutional investors to the extent of 15% of their outstanding equity investment. (IMF 2000, p.426)  
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