A retail forex trading platform, FX-Retail, was introduced by The Clearing Corporation of India under Reserve Bank of India (RBI) to improve transparency in market. The platform lets the traders deal at Market Retail Price (MRP) on internet without the involvement of banks for investments.
Constant complaints of banks gobbling up a large amount of tax has been registered to RBI in the past years. With this platform, an opaque system of contracts and transactions will be created, attracting a larger audience to the market. The weighty fee charged by banks for forex market made the market available for only a small section of businesses, denying a large part of fair trading.
After many complaints, Clearcorp Dealing Systems India came up with such a platform. Clearcorp is a subsidiary to Clearing Corporation of India. It said that the customers will be able to access current rates. In addition to which they’ll be able to place, hit, modify and cancel orders on the platform.
The FX-Retail platform will provide an anonymous and order driven dealing in US Dollar (USD) / Indian Rupee (INR) currency pair for bank customers — individuals, sole proprietorship firms, partnership firms and corporates, Clearcorp said in a statement.
RBI has been preparing for this platform since 2017. This platform will make trading quicker, easier and convenient, eradicating the taxes taken up by banks. it doesn’t have the involvement of banks in transactions, to the traders’ huge relief.
This platform enables importers and exporters trade in US dollars at market prices, which can be accessible by banks and other brokers.
The move is to reduce a significant revenue from banks. This can be met with protests from bankers, but a fair chance to all businesses is what RBI wants.
“The platform provides for an anonymous and order driven dealing for the retail customers where they can place orders and trade in the USD/INR currency pair,” said R Sridharan, managing director of CCIL. “Customers can directly place, hit, modify, cancel orders on the platform.”
