Archive · 11 Dec 2025
RBI Mandates Full Disclosure of Forex Costs
The Reserve Bank of India (RBI) has asked banks and other authorized dealers to be very clear about all the costs involved when people want to exchange money or send money abroad.
This includes fees for sending and receiving money, the exchange rate, and any other charges.
The RBI wants these details to be given to customers before they agree to the transaction and also included in the final confirmation.
This is part of their effort to make the foreign exchange market more transparent and easier to understand for regular people.
RBI asks authorized dealers to disclose full transaction costs for foreign exchange cash, tom, and spot contracts.
Details must include remittance fees, foreign exchange rates, and currency conversion charges.
Disclosure required before entering into the contract and in the deal confirmation.
Part of RBI's ongoing efforts to enhance transparency in the foreign exchange market.
Previous mandate in January 2024 required disclosure of mid-market rates before executing contracts.
- Who
- Reserve Bank of India (RBI)
- What
- Mandated full disclosure of transaction costs for foreign exchange transactions
- When
- Draft circular issued late Tuesday
- Where
- India
- Why
- To enhance transparency in the foreign exchange market
- Organization
- Reserve Bank of India (RBI)
- Affected Parties
- Authorized dealers, retail users
- Transaction Types
- Foreign exchange cash, tom, spot contracts
- Disclosure Requirements
- Transaction costs, remittance fees, foreign exchange rates, currency conversion charges
- Effective Date
- Draft circular issued late Tuesday
- Previous Mandate
- Mid-market rate disclosure (January 2024)