RBI Deputy Governor Rohit Jain urges banks to tighten controls, streamline processes, and enhance digital access for retail forex customers amid rising demand and evolving expectations.
RBI Deputy Governor Rohit Jain has urged banks to tighten oversight and improve the way they serve retail foreign exchange customers, arguing that the gap between regulatory intent and day-to-day service remains too wide. Speaking at a recent industry event, Jain said banks should not treat global liquidity integration as a threat, but should strengthen controls, clarify policies and make cross-border transactions easier for customers.
His remarks come as demand for retail forex services rises with more international travel, overseas study, remittances and global business activity. According to recent reporting, Jain said banks still impose uneven customer charges and timelines, while a review of the sector found repeated documentation demands and delays in outward remittances. That, he suggested, has made the customer experience unnecessarily cumbersome.
The deputy governor’s comments also point to a broader problem in how retail foreign exchange is delivered. Banks have historically relied on branches and authorised dealer networks, but customers increasingly expect digital access, real-time rate information and quicker processing. Industry coverage of Jain’s speech said he wants clearer rules on fees, paperwork and turnaround times so that pricing and service standards are easier for customers to understand.
Jain also stressed that better service cannot come at the expense of control. As more forex activity moves online, banks must reinforce anti-money laundering checks, know-your-customer procedures, transaction monitoring and cybersecurity. He said stronger oversight, rather than fear of integration with global liquidity, should shape the sector’s response. Banks that can combine transparent pricing, faster execution and robust risk management, he argued, will be better placed to compete with fintech firms and expand fee-based business.
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