Categories: Foreign Exchange

Online forex platform to benefit retail buyers/sellers of foreign currency

Clearing corporation of India has developed a new platform which will be available for users by early August this year according to RBI communication.

During 2017, RBI had proposed a foreign exchange trading portal for retail participants with an idea that would provide customers access to an online electronic trading platform on which they can purchase or sell foreign currency at market – clearing prices.The proposed electronic platform  will be operationalised from early August 2019 which unifies existing fragmented market microstructure and provides customers an access to online electronic trading through which they can buy and sell foreign currency at market clearing prices.  This platform therefore promote competion among market makers which would lead to better pricing for all customers regardless of order size. At present buyers of small lots of currency pay a mark-up of anywhere between 1% to 3% depending upon from whom they buy it.So price conscious customers may move to online platform from unorganized  forex market.

According to the information available, FEDAI (Foreign Exchange Dealers Association of India) has informed its members that the customers registration process for the new platform will commence from  July 1, 2019.

Related article:

Surendra Naik

Share
Published by
Surendra Naik

Recent Posts

Features of a Computerized Accounting System

Accounting is a multifaceted discipline. It caters to the diverse informational needs of stakeholders within…

11 hours ago

What is the meaning of computerized accounting?

As the name says ‘computerised accounting’ is the use of computers, software, and hardware to…

1 day ago

Supreme Court overrules capping of Credit card charges

The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…

3 days ago

Preparation and Presentation of Financial Statements of Banks

The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…

3 days ago

Accounting Treatment of Specific Items under accounting policies of banks

The term "accounting treatment" represents the prescribed manner or method in which an accountant records…

3 days ago

Explained: Disclosures Prescribed by RBI under Basel-III

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…

4 days ago