FEDAI tells banks not to convert forex without instructions
In short
FEDAI told banks not to change foreign money into rupees unless the sender or receiver asked for it. The rule was reported after concerns that some banks were using weak exchange rates and reducing payouts to exporters and people receiving money from abroad.
The change could help those receiving overseas payments get a fairer amount. It is not stated which banks were involved or whether any penalties were announced.
What the reporting says
FEDAI directed banks not to convert foreign currency remittances into rupees without specific instructions from the sender or beneficiary, according to a publisher summary. The move follows concerns that intermediary banks were converting dollars at unfavourable rates and leaving small exporters and individuals with less money. Banks were also told to disclose forex service charges and conversion rates on their websites. It is not stated whether any bank was named or penalized.
Why it matters
FEDAI has told banks not to convert incoming foreign remittances into rupees unless the sender or beneficiary specifically instructs them, based on a publisher summary. The guidance was issued after concerns that intermediary banks were using unfavourable exchange rates, which could reduce receipts for small exporters and individuals. Banks were also asked to publish forex service charges and conversion rates online. The reporting does not name any bank or say when the rule starts.