There are a number of overseas foreign exchange trading companies on various internet and trading portals attracting the people by offering them great as well as guaranteed high returns on online forex trading. Till the date, a large number of people have lost huge amount in these type of online forex trade via internet portals. Keeping it in view, the Reserve Bank of India (RBI) has banned such type of payment transactions by asking credit card issuing companies so as to put stop on these illegal forex trade practices.
It is noteworthy here that according to the regulations under Foreign Exchange Management Act 1999,” resident Indians are not allowed to trade in foreign exchange whether it is in domestic market or overseas”.
According to a spokesperson of the RBI, it is easy to find ads by these fake internet or online portals. They exhort to trade in forex and pressurize the public to make their initial investment in Indian rupees (INR). In addition to this, In addition to this, these companies even appoint agents who personally contact easy-to-target people to take forex trading and accept investment scheme referred by them. People are enticed with lots of promises regarding disproportionate or excessive returns on the amount invested.
Public is asked to make the margin payments to complete transactions of these kind of forex trading via credit cards or cash deposit in the various banks in India.
The RBI has asked card issuing companies to remain alert against allowing payments for these unauthorized transactions.
Bank accounts in the name of individuals or concerned people have been opened at different branches of banks to collect the money from the public. So, the banks have also been asked to remain extra vigilant regarding such type of transactions.
Any Indian resident collecting or making such kind of payment in or outside the country is prone to be proceeded against with the violation of regulations pertaining to Know Your Customer norms as well as Anti Money Laundering standards and also for violating FEMA (Foreign Exchange Management Act).