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Date: 2025-12-09 Category: Not Applicable State: Union Government Country: India

RBI releases Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

On December 09, 2025, the Reserve Bank of India (RBI) released a Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions on its website and invited comments from banks, market participants, and interested parties by January 09, 2026. The circular aims to enhance transparency in the foreign exchange market. Feedback may be forwarded to The Chief General Manager, Reserve Bank of India, Financial Markets Regulation Department, 9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001 or by email with subject line “Feedback on Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions”. In January 2024, Authorised Dealers were mandated to provide the mid-market mark / bid and ask price of the foreign exchange derivative contract / foreign currency interest rate derivative contract before entering into the contract with a retail user and include the same in the deal confirmation / term sheet. Now Authorised Dealers will also provide details of transaction costs (remittance fees, foreign exchange rate, currency conversion charges etc.) associated with foreign exchange cash, tom, and spot contracts to retail users. The press release number is 2025-2026/1666. Brij Raj, Chief General Manager is the contact person. The website is www.rbi.org.in and helpdoc@rbi.org.in is the email. The phone number is 022 - 2266 0502.

Key Entities Referenced

Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions: A proposed circular by the Reserve Bank of India aiming to enhance transparency in the foreign exchange market. Reserve Bank of India: The central bank of India, responsible for releasing the draft circular. Mumbai: Location of the Reserve Bank of India's Central Office, relevant for feedback submissions. Authorised Dealers: Entities that will be mandated to provide details of transaction cost.
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प्रेस प्रकाशनी PRESS RELEASE भारतीय ररज़र्व बैंक RESERVE BANK OF INDIA वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502 December 09, 2025 RBI releases Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions The Reserve Bank of India today placed on its website the Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions. Comments on the draft circular are invited from banks, market participants and other interested parties by January 09, 2026. Feedback on the draft circular may be forwarded to: The Chief General Manager Reserve Bank of India Financial Markets Regulation Department 9th Floor, Central Office Building Shahid Bhagat Singh Marg, Fort Mumbai – 400 001 Or by email with subject line “Feedback on Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions”. Background and Objective To enhance transparency in the foreign exchange market, in January 2024, Authorised Dealers were mandated to provide the mid-market mark / bid and ask price of the foreign exchange derivative contract / foreign currency interest rate derivative contract before entering into the contract with a retail user and include the same in the deal confirmation / term sheet. As a further step towards promoting greater transparency in the foreign exchange market, it is proposed to mandate Authorised Dealers to provide the details of transaction cost (remittance fees, foreign exchange rate, currency conversion charges etc.), associated with foreign exchange cash, foreign exchange tom and foreign exchange spot contracts offered to retail users. (Brij Raj) Press Release: 2025-2026/1666 Chief General Manager

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