RBI's draft circular mandates disclosure of forex transaction costs for retail users to enhance transparency.
Summary
The Reserve Bank of India (RBI) has issued a draft circular mandating the disclosure of all transaction costs for foreign exchange dealings. This initiative aims to increase transparency for retail users by providing a comprehensive view of expenses associated with forex transactions, which is crucial for informed financial decisions.
Key Points
- RBI proposed a draft circular on disclosure of forex transactions.
- Mandatory disclosure of all transaction costs, including fees and conversion charges.
- Applicable to retail users.
- Covers cash, tom, and spot contracts.
- The move aims to enhance transparency in foreign exchange dealings.
Full Article
The Reserve Bank of India is enhancing transparency in foreign exchange dealings. A new draft circular proposes mandatory disclosure of all transaction costs, including fees and conversion charges, for retail users on cash, tom, and spot contracts. This move aims to provide a clearer picture of the total expense involved before a deal is finalized.