The Reserve Bank of India (RBI) on December 09, 2025, released the Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions.
The following has been stated namely: -
• A draft circular proposes that Authorised Dealers shall disclose the total cost of foreign exchange transactions to retail users before entering into FX cash, tom, and spot contracts.
• This includes a detailed break-up of all charges and costs — such as remittance fees, currency conversion charges, exchange rates, and intermediary costs — and the disclosure must appear in the deal confirmation.
• The move aims to enhance transparency in the forex market and help retail customers understand the true costs of their transactions rather than just the headline exchange rate.
• The objections and suggestions to the draft circular shall be addressed to the Chief General Manager, Reserve Bank of India, Financial Markets Regulation Department, 9th Floor, Central Office Building, Shahid Bhagat Singh Marg, by January 09, 2026.
[Press Release: 2025-2026/1666]
