A STUDY ON CUSTOMER PERSPECTIVES ON FOREIGN EXCHANGE SERVICES & RISK MANAGEMENT PRACTICES OF THE SELECTED BANKS IN VISAKHAPATNAM CITY

Abstract

Today's globalised world is well connected and integrated with the advent of telecommunication, technology and transport, which facilitate the movement of people, information, knowledge, capital, goods and services. One of the objectives of globalisation is the free movement of capital/ money, which means exchanging one country's currency for the other country's currency and the place/platform that facilitates the foreign exchange market. The foreign exchange market developed due to the advent of telecommunication. The present-day SWIFT network is the leading network that enables financial information between institutions to transfer money. Persons/entities who provide foreign exchange services are called forex dealers, including commercial banks, NBFCs, financial institutions, and other agencies/ individuals should have forex licenses. This study explores customer perspectives on foreign exchange services and practices of selected commercial banks with the help of primary data collected from the customers, including individuals and business entities. Presently, foreign exchange services are most prevalent to facilitate trade (import and export) of goods and services, international travel, education abroad, medical treatment, and purchase of capital goods, machinery and equipment. There is a need to understand the perspectives of forex customers to provide intricacies of the service providers' foreign exchange services and practices—implementing risk management techniques used by banks and business entities.