RBI plans to increase transparency through this step | Photo credit: th-online administrator
In this regard, the central bank has invited comments on the “Draft Circular on Disclosure of Transaction Fees for Foreign Exchange Transactions” from banks, market participants and other interested parties by January 9, 2026.
Transaction fees include transfer fees, exchange rates, currency conversion fees, etc.
“While offering foreign exchange “cash”, foreign exchange “tom” and foreign exchange “spot” contracts to a retail user, authorized dealers will provide the user with details of the total transaction costs (reflecting all relevant costs and charges – shipping and receiving charges including those of any intermediaries, exchange rates and currency conversion charges), before entering into the contract and also include these in the deal confirmation,” the draft circular said.
RBI noted that to enhance transparency in the foreign exchange market, authorized dealers (dealing with foreign exchange) had been mandated in January 2024 to provide the mid-market mark/bid and offer price of the foreign exchange derivative contract/interest rate derivative contract before entering into the contract with a retail user and include it in the deal confirmation/term sheet.
Published on December 9, 2025
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