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RBI Forex Fee Disclosure: Uniform Rules for Retail Users

11 December 20251 min read
BANKING & FINANCERBI Forex FeeDisclosure:Uniform Rules forRetail Users11 December 2025safalsetu.com

Why in the news

RBI wants retail forex customers to see comparable, transparent charges.

Key facts

  • Disclose remittance fees, exchange rates and conversion charges.
  • Earlier, banks set and showed fees as they liked, with no standard format, so costs were hidden or overlapping.
  • January 2024 guidance already required showing mid-market rates and bid-ask quotes.

Exam angle

  • Regulator: RBI.
  • Tom: next-day settlement.

Test yourself

1. In RBI's talks with banks on forex fee disclosure, what does 'tom' refer to?

Tom denotes next-day settlement in forex contracts.

2. RBI's talks on uniform fee disclosure mainly target which group of customers?

The scope is retail customers using forex cash, tom and spot contracts.

3. Banks would have to give what to retail users before executing forex contracts under RBI's proposal?

Banks must provide a cost breakdown, shown in deal confirmations or term sheets.

This topic is part of Daily Current Affairs 11 December 2025 (18 topics).

All topics of the dayDay quizDecember 2025

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