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Electronic trading platform for buying/selling foreign exchange by retail customers of banks are ready for rollout by the Clearing Corporation of India (CCIL),said the Reserve Bank of India on 5th August in Mumbai.
As per RBI said in a release that the concern of translucent and fair pricing for retail users in the forex market has been raised in various fora and in public interactions. The central bank added, Such kind of apparatus will grant transparency while enhancing competition and lead to improved pricing for retail customers.
RBI said Banks may charge their retail customers a pre-agreed flat fee towards administrative expenses, which should be publicly declared, said RBI. This would bring down the total cost faced by the retail customer in the foreign exchange market overall. Encouraging entrance of retail customers to the market, somewhat than through price-setting by their banks would also bring down the risk that banks face in warehousing transactions. Any customer of a bank can access the FX Retail platform who needs to sell or purchase US Dollar against the Rupee for delivery on cash basis on two days after the date of transaction.
On the number of transactions per customer during a day there is no cap and the total amount of transactions of a customer shall be subject to the limit hand over by its bank. The central bank set’s that the volume of a single transaction is not allowed to beat $5 million. It further said that in vision of the advantages of pricing to retail customers, as well as the complete advantage of better price discovery, banks shall assist on boarding of retail customers to the platform quickly.