The Authorized dealers have to furnish an undertaking to the RBI in adhering to the terms and conditions that are introduced from time to time by the FEDAI. Thus, there are different rules for different transactions primarily to safeguard the interest of the importers, exporters’, general public as a whole and also the authorized dealers. FEDAI lays down the terms and conditions that survey the daily Forex transactions in India. Apart from this, it also supports its associate banks with regard to advising and assisting in the training of its personnel. It then certifies the foreign exchange brokers of India and announces the exchange rates to its associate banks.
The role of Foreign Exchange Dealers Association of India has witnessed a steady change over the past few years largely because of the ongoing integration of the international financial sectors and increase in liberalization. Several amendments have taken place in the foreign exchange after witnessing liberation of the financial sector from government regulations. In such circumstances, FEDAI acts as a catalyst and ensures smooth functioning of the markets while closely co-coordinating with the Reserve Bank of India and other group organizations. It takes maximum advantage from other associate banks through constant improvement in areas such as product customization, market intelligence, risk management, etc.
The topic of Foreign Exchange is very vast and very few bankers have gained mastery over. FEDAI has its own website which announces periodical market-related data which is accessible to the general public and to its members. In the year 2008, the FEDAI has released a treatise and a brochure marking the completion of its 50 years. It talks about the foreign exchange facilities that will be of great assistance to Indian citizens. It also provides an in-depth understanding and self-awareness among the staff members of the Authorized Dealers’ branch whose responsibility is to manage customers concerns and improve the customer service quality.
The Foreign Exchange Dealers Association of India and RBI have shared an unparalleled and close affiliation all these years. While there isn’t any official association with the RBI, FEDAI works under Reserve Bank’s guidelines. FEDAI has been a partner to many since its inception to implement best practices in the Foreign Exchange trade. Furthermore, FEDAI has been instrumental in being a communication channel between the authorized dealers and the Reserve Bank and continues to offer its support and important insights.