Foreign exchange retail buying and selling platform: RBI says foreign exchange retail buying and selling platform prepared for rollout on Aug 5

“The problem of clear and truthful pricing for retail customers (people and Micro, Small and Medium Enterprises) within the international alternate market has been raised in varied fora and in public interactions,” RBI mentioned in a launch.

“Such a mechanism will present transparency whereas enhancing competitors and result in higher pricing for retail clients,” the central financial institution added.

RBI mentioned banks might cost their retail clients a pre-agreed flat payment in direction of administrative bills, which ought to be publicly declared. General, this might convey down the overall value confronted by the retail buyer within the international alternate market. Facilitating direct entry of retail clients to the market, fairly than by means of price-setting by their banks, would additionally convey down the chance that banks face in warehousing transactions.

The FX-Retail platform might be accessed by any buyer of a financial institution who must buy or promote US Greenback in opposition to the Rupee for supply on money foundation — similar day, tomorrow foundation – subsequent day or spot foundation — two days after the date of transaction.

There isn’t any cap on the variety of transactions per buyer throughout a day, and the overall quantity of transactions of a buyer shall be topic to the restrict assigned by its financial institution. The central financial institution prescribed that the dimensions of a single transaction will not be allowed to exceed $5 million.

CCIL won’t levy transaction prices if such transactions don’t exceed $50,000 per day, RBI mentioned.

A transaction cost of 0.0004 per cent shall be charged by the CCIL for transactions greater than $50,000.