India’s central bank has urged lenders to adopt clearer policies on foreign exchange charges, documentation and processing timelines after a review found gaps in how banks handle customers’ cross border transactions.
Reserve Bank of India Deputy Governor Rohit Jain said banks were imposing multiple documentation requirements and delays on outward remittances, highlighting a gap between regulatory objectives and actual customer experiences.
The RBI has authorised banks to establish transparent policies covering documentation, fees, processing timelines, escalation procedures and grievance redressal for foreign exchange transactions.
Jain said India’s foreign exchange market has expanded significantly, with average daily turnover across spot and derivatives markets reaching about $80 billion, while the non deliverable forward market records roughly $7 billion in daily turnover.
He also identified expanding the number of market makers, increasing participation by public sector banks and promoting electronic trading platforms as key priorities for the development of India’s foreign exchange market.
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