FX-Retail To Link To Bharat Connect For Fair Forex Deals

Mumbai: The RBI has decided to expand the reach of the FX-Retail platform by linking it with the NPCI’s Bharat Connect so that greater transparency and fairness in the pricing of foreign exchange is provided to more users, especially individuals and Micro, Small, and Medium Enterprises.

The linkage will enable users to register and transact on the FX-Retail platform through the apps of banks (mobile applications, internet banking etc.) and non-bank payment system providers, which are integrated with Bharat Connect, according to an RBI statement.

Bharat Connect (earlier known as Bharat Bill Payment System) is operated by the NPCI.

In the first phase, it is proposed to implement a pilot facilitating the purchase of the US dollar against the rupee by individuals and sole proprietors. Going forward, the scope will be expanded to cover other FX transactions including the sale of the US dollar against the rupee and other categories of users.

Users will continue to have the option to directly access the FX-Retail platform, as hitherto, and transact under the existing mechanism. Instructions to banks on the operational aspects of the pilot will be issued separately. The Clearing Corporation of India Ltd (CCIL) had launched the FX-Retail platform in 2019, with the objective of bringing greater transparency and fairness in the pricing of foreign exchange for users, especially for individuals and the Micro, Small, and Medium Enterprises. Presently, the FX-Retail platform is accessible through an internet-based application.

The RBI also said that it proposes to launch podcasts for wider dissemination of information that is of interest to the general public.

The Reserve Bank of India has been deploying traditional as well as new-age communication techniques as a key part of its toolkit to ensure transparency and greater impact of its decisions, explain the rationale behind its decisions, and disseminate various awareness messages to a wider audience.