FX-Retail Platform to Link with Bharat Connect for Fair Forex Access
The RBI has decided to expand the reach of the FX-Retail platform by linking it with the NPCI's Bharat Connect so that greater transparency and fairness in the pricing of foreign exchange is provided to more users, especially individuals and Micro, Small, and Medium Enterprises.
According to an RBI statement, the linkage will enable the users to register and undertake transactions on the FX-Retail platform using the apps of banks- mobile applications, internet banking, etc-and non-bank payment system providers which are integrated with Bharat Connect.
Bharat Connect was previously known as Bharat Bill Payment System.
In the first stage, it is proposed that a pilot enabling the purchase of the US dollar against the rupee be implemented. Subsequently, other FX transactions, including the sale of the US dollar against the rupee and other categories of users, will be covered. Users will continue to have the option to directly access the FX-Retail platform, as hitherto, and transact under the existing mechanism. Instructions to banks on the operational aspects of the pilot will be issued separately.
The Clearing Corporation of India Ltd (CCIL) had introduced the FX-Retail platform in 2019 in order to bring greater fairness and transparency in the process of foreign exchange pricing for consumers, especially for individuals and for Micro, Small, and Medium Enterprises. Currently, the FX-Retail platform is available through an internet-based application.
The RBI also said that it proposes to launch podcasts for wider dissemination of information that is of interest to the general public.
The Reserve Bank of India has been deploying traditional as well as new-age communication techniques as a key part of its toolkit to ensure transparency and greater impact of its decisions, explain the rationale behind its decisions, and disseminate various awareness messages to a wider audience. Reserve Bank expands the scope of public awareness through social media and otherwise for years. In continuation of these efforts, it proposes the launching of podcasts so as to make information of public interest and use more accessible and more visible, the official statement said.
