Beware! RBI Warns Against Illegal Forex Trading Platforms, Check Full List Here

The Reserve Bank of India (RBI) is looking more closely at companies that offer forex trading without a license to protect Indians from scams. With promises of huge profits, these organisations have been getting people to do illegal things.

Discovering Illegal Activities

After looking into it, the RBI found a disturbing trend. Forex trading companies that are not licensed are using a lot of different strategies to run their businesses. To open accounts at various bank branches where money is gathered for margin, investments and other fees they often hire local agents. But often, the activities carried out with these accounts don’t match their declared goals.

Using Domestic Channels to Transact Illegally

Furthermore, these unofficial organisations facilitate illicit currency trading by allowing individuals to deposit or move money in Indian Rupees. They use domestic payment methods including internet transfers and payment gateways to execute their illicit operations.

Increased Attention Is Encouraged

In view of these results, the RBI has strongly advised banks to exercise more vigilance and caution. Any account that a bank suspects of enabling illegal forex trading must be reported to the Directorate of Enforcement of the Government of India so that appropriate action may be taken.

Providing Information to Empower Customers

Banks in the Authorised Dealer Category are able to advise their clients on secure foreign exchange transactions. It is recommended that they advise working exclusively with “Authorised Persons” and “authorised ETPs” and announce that these lists are accessible on the RBI website. The RBI also keeps an Alert List with the names of platforms, websites, and organisations that support unlicensed businesses or ETPs. When doing forex transactions, people should use this list as a vital tool to confirm the authorised status of any organisation.