Head
Offices/Principal Offices of all
Authorized Dealers In Foreign Exchange.
Dear
Sirs,
SPREAD
ALLOWED TO BANKS BETWEEN BUYING AND SELLING RATES
In
terms of Para 1 of Chapter III of FE Manulal-2002, general
permission has been given to Authorised Dealers to determine
their own rates of exchange, both for ready and forward
transactions for the public, subject to the condition that
the margin between the buying and selling rates should not
exceed fifty paisa per US dollar or its equivalent in other
currencies.
It
has now been decided to bring down this margin between the
buying and selling rates to twenty paisa per US dollar to
match it with the existing inter-bank market conditions.
Accordingly, para 1 Chapter III of FE Manual-2002 is amended
as under:-
“AUTHORISED
RATES OF FOREIGN EXCHANGE
Section 4 (2) of the Act lays down that, except with the
general or special permission of the State Bank, all transactions
in foreign exchange shall be carried out at rates authorised
by the State Bank. A general permission has been given to
Authorised Dealers to determine their own rates of exchange,
both for ready and forward transactions for the public,
subject to the condition that the margin between the buying
and selling rates should not exceed twenty paisa per US
dollar or its equivalent in other currencies. This condition
does not apply to inter-bank transactions.”
