While large corporations can benefit from tighter pricing warranted by the liquidity in our markets, charges recovered from smaller customers do not appear to be justified by higher cost of processing/warehousing small ticket transactions, Rao said on March 5 at the 17th FEDAI (Foreign Exchange Dealers’ Association of India) Annual Conference in Cairo, Egypt.
Source: Business Standard On Thursday, the RBI posted Rao’s remarks to its website. The introduction of the FX-Retail platform aimed to move price discovery to an automated platform. Yet, it doesn’t seem like banks have tried to persuade clients to adopt that platform, he said.Rao emphasized the critical role played by Self Regulating Organizations (SROs) like the FEDAI, which have formal and informal contacts and their ears to the ground within the industry. He called on the FEDAI and all banks to ensure fair and transparent pricing for less resourceful customers in the foreign exchange market.
Source: Reserve Bank of India The RBI wants to see the FEDAI take more coordinated action to stop bogus foreign currency trading platforms in the nation, according to Rao.
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