Archive · 9 Dec 2025
RBI Proposes Disclosure of Forex Transaction Costs
The Reserve Bank of India (RBI) wants banks and other authorized dealers to tell people the full cost of buying or selling foreign currency.
This includes fees for sending and receiving money, the exchange rate, and any other charges.
The RBI has asked for feedback on this idea by January 9, 2026.
They want to make sure people know all the costs before they agree to a deal.
This is part of their effort to make the foreign exchange market more transparent and fair.
Earlier, in January 2024, the RBI had already asked dealers to show the mid-market price before any deal.
RBI proposes that Authorised Dealers disclose transaction costs for foreign exchange contracts to retail users.
Transaction costs include remittance fees, foreign exchange rate, and currency conversion charges.
Dealers must provide these details before entering into a contract and include them in the deal confirmation.
Comments on the draft circular are sought by January 09, 2026.
This move is aimed at enhancing transparency in the foreign exchange market, following a similar mandate in January 2024.
- Who
- Reserve Bank of India (RBI) and Authorised Dealers (AD)
- What
- Proposal to disclose transaction costs for foreign exchange contracts
- When
- Comments sought by January 09, 2026
- Where
- India
- Why
- To enhance transparency in the foreign exchange market
- Organization
- Reserve Bank of India (RBI)
- Proposal
- Disclosure of transaction costs for foreign exchange contracts
- Affected Parties
- Authorised Dealers and retail users
- Transaction Types
- Foreign exchange 'cash', 'tom', and 'spot' contracts
- Cost Components
- Remittance fees, foreign exchange rate, currency conversion charges
- Deadline for Comments
- January 09, 2026
- Previous Measure
- Mandate to provide mid-market mark / bid and ask price (January 2024)