Rohit Jain calls for clearer policies and streamlined processes in retail foreign exchange services amid increasing market activity and RBI’s broader financial market development efforts.
Rohit Jain has urged Indian banks to tighten the way they handle retail foreign exchange, warning that pricing and service standards still do not always match the regulator’s intent. Speaking in a speech delivered last Friday and released by the Reserve Bank of India on Wednesday, the deputy governor said lenders should spell out clear policies on charges, turnaround times, escalation paths and complaints handling.
Jain said a recent RBI review found gaps in bank policies covering customer transactions, fees and the paperwork required for outward remittances. He added that some customers face repeated documentation demands and delays when sending money abroad, underlining the need for simpler and more transparent processes. The remarks fit a broader RBI push to make foreign exchange services more efficient and easier to use.
The comments also come as the central bank steps up its work on foreign exchange market development. According to Jain, average daily turnover in India’s foreign exchange market, including spot and derivatives, has risen to about $80 billion, while activity in the non-deliverable forwards market is around $7 billion a day. Reuters reported that he said the next phase should include a wider market-maker base, greater participation from state-owned banks and more use of electronic trading platforms.
That focus aligns with the RBI’s wider agenda for deepening financial markets and broadening sources of capital. The Financial Express reported earlier this week that Jain chaired a review with major bank chiefs on foreign exchange initiatives, including a concessional FCNR(B) swap facility designed to attract dollar inflows. Business Standard has also reported Jain’s view that India cannot depend only on bank balance sheets to finance the investment needed for a developed economy by 2047, making stronger bond, foreign exchange and derivatives markets increasingly important.
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