Fundamentals of Forex

Course summary

Forex is the largest financial market in the world. While getting associated with forex business and operations, it is essential to gain the required knowledge on forex. This course on 'Fundamentals of Forex' gives an overview of forex and its forms. The course provides knowledge of the processes associated with forex transactions such as customer identification, purchase and sales of foreign exchange, general mandates pertaining to forex. The course also showcases some of the frequently asked questions on foreign exchange.

Learning outcome

By the end of the course, learner will be able to:

  • Explain the terminologies associated with Forex.
  • Describe the procedure to identify customer.
  • List the RBI guidelines for collection of documents.
  • Understand the different forms of foreign exchange and explain the procedure for purchase of foreign exchange.
  • Become aware of the general mandates pertaining to Forex.
  • Answer any of the frequently asked questions related to foreign exchange.

Modules

The course gives an understanding of Forex, terminologies used in Forex, restrictions to bring in and take out Indian currency notes and the RBI guidelines for collecting documents from customers.

The course explains the different types of customers , the required official documents to establish the identity and the points to be noted during documentation.

The course deals with different forms of foreign exchange which includes foreign currency notes, traveler's cheque, foreign currency travel prepaid card, SWIFT transfers such as wire transfer and telegraphic transfer, foreign currency demand drafts and cryptocurrency like bitcoin.

The course provides insight on the procedure for encashment of traveler cheques, procedure for encashment transaction, currency declaration form, calculation of USD equivalent of other currencies, encashment from legal entities, payment of proceeds of encashment, purchases from other authorized dealers, purchases from merchant establishment or service providers, issue of encashment certificate and franchisees.

The course deals with the general rules for release or remittance of exchange and the procedure for sale of foreign exchange, sales against reconversion of Indian currency, employment, emigration, and education. The module also explains the payment modes, calculation of USD equivalent of other currencies, cheque acceptance policy, Form 60 and PAN, and procedures for reloading foreign currency prepaid card.

The course provides an understanding of maintenance and preservation of record, display of exchange rates and other related charges, inspections of transactions by RBI, audit, conditions for provision of doorstep services for Forex, revocation of license, and releasing foreign exchange against current dated cheque from AD-II/FFMC.

The course covers the Frequently Asked Questions (FAQs) and provides the answers related to Forex transactions.