RBI nudges banks to offer better forex rates to retail customers

RBI has asked banks to submit quarterly data on retail and MSME customers onboarded on the CCIL FX-Retail platform, which offers forex at near inter-bank rates without bank mark-ups of around Rs 1.50-2 per dollar. The regulator wants banks to push more small-ticket customers to this platform, arguing that retail buyers should not pay more than corporates for dollars. Bankers have pushed back, saying the forex market structure differs from stock exchanges and that the mark-up covers operational costs, lot-size risk and profit margins.