Forex trading platform for retail participants ready for roll-out on Aug 5: RBI

Our Bureau Mumbai | Updated on June 20, 2019 Published on June 20, 2019

A forex trading platform for retail participants is ready for roll-out by CCIL on Aug 5.   -  REUTERS

The Reserve Bank of India, on Thursday, said the electronic trading platform for buying/selling foreign exchange by retail customers of banks is ready for rollout by the Clearing Corporation of India Limited (CCIL) on August 5. The customer registration process on the platform will commence on July 1.

The central bank said charges will not be levied by the CCIL on transactions that do not exceed $50,000 per day. A transaction charge of 0.0004 per cent will be charged by the CCIL for transactions in excess of $50,000 per day.

Fees charged by banks, if any, should be indicated on the FX-Retail platform. Banks may recover from customers transaction and settlement charges levied by CCIL.

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.

The FX-Retail platform can be accessed by any customer of a bank (through the website, who has a need to purchase or sell US dollar against the rupee for delivery on cash basis (same day), tom basis (next day), or spot basis (two days after date of transaction).

In view of the advantages of transparency and pricing to retail customers, as well as the systemic advantage of improved price discovery, the RBI said banks should facilitate onboarding of retail customers to the platform expeditiously.

A quarterly return should be submitted by all banks on the distribution of customer transactions (across FX-Retail, other electronic trading platforms, and other channels) and the fees charged by them

Overall, this (FX-Retail platform) would bring down the total cost faced by the retail customer in the foreign exchange market, the RBI said.

Published on June 20, 2019

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