FINANCIAL MARKETS

Well-functioning, liquid and resilient financial markets help monetary policy transmission as well as in allocation and absorption of risks entailed in financing India’s growth.

Information pertaining to Financial Market Department


RIA No Information Sought Proposed Reply Date of Reply
E/00803 I have tried to find the information about the exchange rate value of pound against Indian Rupees but it is not available in any bank or on RBI website so I request you to provide me the information of exchange rate value of pound from May 2, 2017 to May 10, 2017. The historical data of reference rates of GBP/INR, before July 10, 2018 is available on the RBI website on the Home Page- Current Rates>Exchange Rates> Archives. The link is as under: https://www.rbi.org.in/scripts/ReferenceRateArchive.aspx

Since July 10, 2018, FBIL (Financial Benchmarks India Ltd.) computes and publishes the USD/INR, EURO/INR, GBP/INR and JPY/INR Reference Rates. The link is given below: https://www.fbil.org.in/#/home
February 03, 2021
P03352

P03352
US $, selling rate chart, for making import payment, for the period 01.09.2021 to 21.09.2021. From July 10, 2018, Financial Benchmarks India Private Limited (FBIL) started computation and publication of the Reference Rate for USD/INR and other major currencies. The link is given below: https://www.fbil.org.in/#/home.

Accordingly, Reserve Bank of India (RBI) discontinued the publishing of Reference Rate for USD/INR and other major currencies from this date. Please refer to our Press Release dated July 04, 2018 on Computation and Dissemination of Reference Rate- Taking Over by Financial Benchmarks India Private Limited (FBIL). The link is given below: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44393
October 05, 2021
What is the basis to be followed by the concerned bank, to charge buying rate of US $. Please refer to Para 6.1 of Master Circular on Customer Service in Banks dated July 1, 2015. The decision to prescribe service charges has been left to individual banks. While fixing service charges for various types of services like charges for cheque collection, etc., banks should ensure that the charges are reasonable and are not out of line with the average cost of providing these services. Banks should also take care to ensure that customers with low volume of activities are not penalized. The link is given below: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9862&fn=2&Mode=0 October 05, 2021
E/08768 To know, whether Forex trading using a platform provided by registered broker is legal in India for below mentioned currency pairs-

EUR-USD

GBP-USD

USD-JPY

XAU-USD

XAG-USD

Please add if any other pair is legal.

I. As per Section 3 (a) of the Foreign Exchange Management Act (FEMA), 1999, save as otherwise provided in FEMA, 1999, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall deal in or transfer any foreign exchange or foreign security to any person not being an authorised person.

II. As per Section 5 and 6 of the Foreign Exchange Management Act (FEMA), 1999, any person may sell or draw foreign exchange to or from an Authorised Person for permitted current and capital account transactions.

III. As per Regulation 4 read with Schedule I of the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000], a person, whether resident in India or resident outside India, may enter into a foreign exchange derivative contract with an authorised dealer only. List of authorised dealers is available on the following link: https://www.rbi.org.in/scripts/category.aspx

IV. As per this list, the broker providing forex trading platform is not an authorised dealer.

V. As per Para 3(1) of the Electronic Trading Platforms (ETP) (Reserve Bank) Directions, 2018 [Notification No.FMRD.FMID.08/2018 dated October 05, 2018], no entity shall operate an ETP without obtaining prior authorisation of the RBI under these directions. The link is as follows: https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11385&fn=6&Mode=0

VI. Platform referred in the RTI is not authorised under the Electronic Trading Platforms (Reserve Bank) Directions, 2018.

VII. Also, please refer to the press release (2010-2011/1196 dated February 21, 2011) on ‘RBI Advisory on Overseas Forex Trading through Electronic/ Internet Trading Portals’, available on the bank’s website at https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=23941

VIII. As regards permitted currency pairs:

i. Currency pairs permitted in cash/tom/spot transactions: As per Para 5 and 6 of the Foreign Exchange Management Act (FEMA), 1999, residents may buy or sell foreign exchange for permitted current and capital account transactions. Therefore, the currency pair of the Forex transaction shall be in line with the currency in which the underlying current/capital account transaction is denominated.

ii. Currency pairs permitted in derivative transactions:

a. In OTC market transactions: As per the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000] read with Master Direction-Risk Management and Inter-Bank Dealings dated July 05, 2016 (as updated from time to time), residents may undertake foreign exchange derivative transactions involving INR for the purpose of hedging exchange rate risk on transactions permissible under the FEMA, 1999. Foreign exchange derivative transactions not involving INR can be undertaken for purpose other than hedging. There is no restriction on currency pair in both these cases. Please refer to the following link: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=10485&fn=6&Mode=0

b. In exchange traded derivative transactions: As per the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000] read with Currency Futures (Reserve Bank) Directions, 2008 [Notification No. FED.1/DG(SG)-2008] dated August 6, 2008, as amended from time to time, and the Exchange Traded Currency Options (Reserve Bank) Directions, 2010 [Notification No. FED.01 / ED (HRK) - 2010] dated July 30, 2010, as amended from time to time, residents are permitted to enter into currency futures and options contracts in USD-INR, EUR-INR, GBP-INR, JPY-INR, EUR-USD, GBP-USD and USD-JPY on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India. Please refer to the following links:
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=4410&Mode=0
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=5913&Mode=0
https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=10172&fn=5&Mode=0

November 12, 2021
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