Archive · 24 Dec 2025
RBI Proposes Rules to End Hidden Fees on Foreign Exchange Transactions
The Reserve Bank of India (RBI) has proposed new rules to make foreign exchange transactions more transparent.
Currently, people often don't know the full cost of sending money abroad until after they've sent it.
The RBI wants banks and other authorised dealers to show all fees, exchange rates, and charges upfront.
This includes fees for sending money, the exchange rate used, and any charges for converting currency.
The rules apply to different types of transactions, like sending cash immediately, sending money the next day, or sending money within two days.
The RBI has also been asking dealers to share more information about prices for other types of transactions.
By making all costs clear from the start, customers can better compare options and choose the best one for their needs.
Industry experts see this as a good step towards reducing hidden fees and making cross-border payments more trustworthy.
The RBI is asking for feedback on these rules until January 9, 2026.
The Reserve Bank of India (RBI) has proposed new rules to mandate upfront disclosure of all foreign exchange transaction costs.
The rules aim to address hidden charges, opaque exchange rates, and layered fees in cross-border payments.
Authorised dealers, including commercial banks and standalone primary dealers, must disclose remittance fees, exchange rates, and currency conversion charges before a customer agrees to a transaction.
The proposed framework applies to cash transactions (T+0), tom transactions (T+1), spot contracts (T+2), and derivative transactions.
The RBI has invited comments on the draft circular, with feedback open until January 9, 2026.
- Who
- Reserve Bank of India (RBI) and authorised dealers including commercial banks and standalone primary dealers
- What
- Proposed rules to mandate upfront disclosure of all foreign exchange transaction costs
- When
- Feedback open until January 9, 2026
- Where
- India
- Why
- To bring greater transparency to cross-border payments and help customers assess the true cost of transactions
- Regulator
- Reserve Bank of India (RBI)
- Proposed Rules
- Mandate upfront disclosure of all foreign exchange transaction costs
- Affected Transactions
- Cash (T+0), tom (T+1), spot (T+2), and derivative transactions
- Applicable Entities
- Authorised dealers, including commercial banks and standalone primary dealers
- Customer Types
- Retail and non-retail users (regulated entities, Indian entities with net worth ₹500 crore or more, non-resident entities)
- Feedback Deadline
- January 9, 2026