The Reserve Bank of India on Tuesday released a draft circular proposing greater transparency in foreign exchange transactions by mandating banks to disclose all transaction costs to retail users. The draft has been uploaded on the RBI website, and comments have been invited from banks, market participants and stakeholders by January 9, 2026.

Feedback may be submitted by post to the Chief General Manager, Financial Markets Regulation Department, RBI, Mumbai, or by email with the subject line “Feedback on Draft Circular on Disclosure of Transaction Cost for Foreign Exchange Transactions.”

The proposal builds on a January 2024 directive requiring authorised dealers to disclose mid-market, bid and ask prices before finalising derivative contracts with retail users. The new circular proposes that authorised dealers provide detailed cost disclosures—including remittance fees, forex rates and currency conversion charges—for retail forex cash, tom and spot transactions.

The measure aims to enhance transparency and improve market fairness for retail participants.