Speaking at FEDAI’s Annual Day, Jain said India’s foreign exchange market needs greater depth to withstand international disruptions and adapt to changing trade needs. Despite improvements in stability and market discipline, access remains uneven. He said reforms should be assessed through quicker service, clearer pricing and better customer experience, rather than product launches alone.

Jain highlighted the Special Rupee Vostro Account framework, which enables international trade payments in rupees. Setting up accounts, he explained, is only a starting point. Banks also need trade corridors with flows in both directions, dependable overseas banking partners and attractive customer rates. Local-currency settlement can lower costs and reduce exchange-rate risk.

He flagged limited public sector bank involvement in forex derivatives, despite their links with MSMEs beyond major cities. Large businesses remain the main users of these instruments, leaving smaller firms without adequate access to currency-risk protection. Jain called for greater PSB participation and a shift towards electronic dealing platforms.

Referring to volatility during March and April, Jain said the RBI intervened against unhealthy trading practices linking domestic and offshore non-deliverable forward markets. Closer global integration requires stronger risk management, internal supervision and sound judgment, he said. He also asked FEDAI to guide banks towards shared professional standards.