RBI announces roll out of forex trading platform from August 5

RBI announces roll out of Forex trading platform from August 5 which will be available for retail.

On June 6, the RBI announced the rolling out of foreign exchange trading platform for retail participants.

The Central bank stated that the platform had been developed by Clearing Corporation of India and was being tested by users.

Banks may charge their retail customers a pre-agreed flat fee towards administrative expenses, which should be publicly declared.

Overall, this would bring down the total cost faced by the retail customer in the foreign exchange market.

Facilitating direct access of retail customers to the market, rather than through price-setting by their banks, would also bring down the risk that banks face in warehousing transactions.

The FX-Retail platform can be accessed by any customer of a bank (through the website https://www.fxretail.co.in) who has a need to purchase or sell US Dollar against the Rupee for delivery on cash basis next day, or spot basis (two days after the date of transaction).

There is no cap on the number of transactions per customer during a day. 

The total amount of transactions of a customer shall be subject to the limit assigned by its bank

The size of a single transaction is not allowed to exceed $5 million.