RBI's New Move: Transparency in Foreign Exchange Costs

The Reserve Bank of India has released a draft circular aiming to increase transparency in foreign exchange transactions. By January 2024, dealers must disclose mid-market prices for contracts, and future mandates will include detailing all transaction costs. Stakeholders can submit comments on the draft by January 9, 2026.

The Reserve Bank of India (RBI) introduced a draft circular on Tuesday, focusing on enhancing the transparency of foreign exchange transaction costs.

According to the draft, authorized dealers are required to disclose the mid-market mark, bid, and ask prices of foreign exchange derivative contracts by January 2024. This will include retail contracts.

Furthermore, the RBI aims to mandate that dealers provide detailed transaction costs such as remittance fees and currency conversion charges to retail users. Interested parties can submit their feedback on the draft by January 9, 2026.

(With inputs from agencies.)