The FX-Retail Platform is an electronic trading platform launched by the Reserve Bank of India (RBI) in August 2019 to enable retail customers to buy and sell foreign exchange (forex) online. The platform is operated by the Clearing Corporation of India Ltd. (CCIL) and is designed to provide retail customers with access to transparent and competitive forex rates.
The FX-Retail Platform is accessible through the internet banking portal of participating banks and allows customers to place orders for forex transactions in real-time. The platform supports transactions in major currencies such as the US dollar, euro, British pound, and Japanese yen, among others.
The platform offers two types of forex transactions: spot transactions and forward transactions. Spot transactions involve the immediate purchase or sale of forex at the prevailing market rate, while forward transactions involve the purchase or sale of forex at a fixed rate for delivery on a future date. The platform also provides customers with access to forex rates for up to two days in advance.
To use the FX-Retail Platform, customers need to have an active savings or current account with a participating bank and register for internet banking. Once registered, customers can access the platform and place orders for forex transactions. The platform allows customers to view the prevailing forex rates and select the desired currency and transaction type.
The FX-Retail Platform has several advantages for retail customers, including:
- Transparent and competitive rates – The platform provides customers with access to transparent and competitive forex rates, which are determined by the market demand and supply for the respective currencies.
- Convenience – The platform allows customers to place forex orders from the comfort of their homes or offices, without the need to visit a bank branch.
- Real-time processing – The platform processes forex transactions in real-time, which means that customers can receive the purchased forex or the sale proceeds within a short time.
- Reduced paperwork – The platform eliminates the need for customers to fill out physical forms and submit them to the bank, thereby reducing paperwork and saving time.
The FX-Retail Platform is a step towards digitizing the forex market in India and making forex transactions more accessible and convenient for retail customers. The platform has been well-received by customers and has helped increase the transparency and efficiency of the forex market in India.