Daily rupee turnover reaches $185 billion, Jain says
Reserve Bank of India Deputy Governor Rohit Jain addressed the Foreign Exchange Dealers' Association of India on August 14, 2026. He urged authorized dealers to translate regulatory delegation into lower customer costs and better access for smaller market participants.
From rationing to $185 billion daily turnover
India's foreign exchange reserves rose from $38 billion in 2000 to $691 billion in 2026, while combined spot and derivatives daily turnover reached $80 billion, up from $41 billion in fiscal year 2022.
According to the Bank for International Settlements Triennial Survey, total onshore and offshore rupee turnover expanded to $185 billion daily in 2025 from $119 billion in 2022.
Notional outstanding in rupee derivatives reached approximately ₹130 lakh crore, a fourfold increase since fiscal year 2021.
The interbank market accounts for roughly 70 percent of onshore volume.
Registrations with the Clearing Corporation of India trade repository doubled to 87,000 between 2019 and 2025, while non-deliverable forward turnover reached $7 billion daily.
Delegation meets retail distribution
Jain outlined four priorities for the coming decade: operational delegation, retail access, local-currency settlement, and end-to-end digitalization.
Recent reforms include the Authorised Persons Regulations issued in May 2026, which established a Forex Correspondent Scheme, and the Export and Import Regulations taking effect on October 1, 2026.
Jain noted that public sector banks and small enterprises remain underrepresented in currency risk hedging despite expanded infrastructure.
Architecture without distribution
The Reserve Bank has modernized market infrastructure, but commercial banks still bottleneck client access with defensive paperwork.
Regulatory delegation fails if transparent pricing is denied to retail users and small businesses.
Until public sector lenders embrace active market-making, structural reform remains half-finished.