Reserve Bank of India Urges Retail Forex Take Up

Indian Forex

Forex trading in India has been a bit of a grey area for many years. The world’s seventh-largest economy in with an estimated 1.7 billion people, boasts the fastest-growing middle class in the world, with approximately 50% of the population categorised as middle class. The number of households with a disposable income of more than $10,000 jumped from 2.5 million in 1990 to almost 50 million in 2015. From 2027 India’s population is predicted to surpass China’s and its middle class is set to overtake that of Europe and the United States.

One area which has seen a direct correlation with a burgeoning Indian middle class has been a rise in forex trading. Although not completely illegal in India, forex trading is restricted to certain currencies, which are paired against the INR as well as some of the ‘cross currencies.’ Government concerns over fx outflow pressuring the INR have meant restrictions in place for many years. However, that could all be changing, as the Reserve Bank of India has urged banks to make retail forex trading popular amongst retail and small business houses and small and medium enterprises (MSMEs)

The Clearing Corporation of India Ltd (CCIL) platform recently went live with the purpose of enabling small businesses to trade forex at market prices. BP Kanungo, the Deputy Governor of Reserve Bank of India said at the Forex Association of India Conference in Singapore earlier this month:

‘I will also take this opportunity to highlight two other important issues. First, the issue of transparent and fair pricing of foreign exchange transactions which has been brought to our notice by various category of users,

BP Kanungo

Due to Government restrictions and the lack of access to forex trading platforms, fair prices in fx have been a difficulty for small and medium businesses. The RBI developed the CCIL to address the issue following years of complaints and frustration regarding FX accessibility. The Deputy Governor is now urging an increased take-up of the CCIL platform which could pave the way for further deregulation and retail forex development

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Ben Myers

After a long career in Finance which included HSBC and Bank of Ireland, Ben is now a popular commentator on the financial markets. A regularly featured writer for,, amongst others, Ben remains a keen trader of Forex, Stocks and Crypto