The Reserve Bank of India has allowed individuals and small businesses to use foreign exchange trading platform as they can use the inter-bank trading platform to cut forex deals, a move that will bring transparency in pricing.
“A mechanism is proposed for improving the pricing outcome for the “retail user” (to be defined in terms of transaction size) under which client pricing is directly determined in the market by providing customers with access to an inter-bank electronic trading platform,” the central bank said in its bi-monthly policy statement.
Bid/offers from clients and authorised dealer banks can be matched anonymously and automatically in the trading platform.
“Such a mechanism will provide transparency while enhancing competition and lead to better pricing for customers.”
RBI has taken of note of different allegations, which were raised related to transparency and fair pricing for retail users.
Source: economictimes.indiatimes.com