RBI Alert: Beware of these ‘illegal’ websites! Transactions in foreign currency done here can lead to legal action
RBI Alert List of entities not authorized to deal in forex: If you are transacting or planning to do transactions related to foreign exchange through a website which you are not sure about its legal validity So be careful. The Reserve Bank has issued an alert list of 34 such entities and their websites, through which legal action can be taken against you for doing any transaction related to foreign exchange.
The list of these unauthorized entities released by the Reserve Bank includes Olymp Trade, Alpari, AnyFX, Binomo, Forex.com (Forex.com), FBS, Forex4Money ( Includes 34 websites like Forex4money), HotForex, iForex, and XTB. You can see the complete list of all these websites by visiting the Reserve Bank of India website here: https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4183
RBI warning
In a statement issued by the Reserve Bank of India (RBI) on Wednesday, it has been said that these 34 entities or websites included in the alert list will not be allowed to transact in foreign exchange or operate electronic trading platforms (ETPs) for forex transactions. has not been given. Therefore, it is completely illegal for them to conduct such activities. The Reserve Bank has also warned that doing any kind of foreign exchange-related transactions through these websites is risky, and legal action will be taken against the person doing so under the Foreign Exchange Management Act (FEMA) of 1999. May go.
See the alert list on the RBI website
The Reserve Bank had earlier issued a statement on its behalf on February 3, 2022, also, instructing the common people not to do any kind of transaction through any unauthorized ETP foreign exchange. Along with this, people were also warned to stay away from any kind of unauthorized forex transactions. But even after issuing this clarification, such references still keep coming to the Reserve Bank, in which information about the legal status of an ETP is sought. Keeping this in mind, RBI has now decided to put an alert list of unauthorized entities and websites on its website. However, along with this, the Reserve Bank has also clarified that if an entity or website is not included in this alert list, it does not mean that it is authorized. This list includes the names of only those entities, about whom the Reserve Bank was aware at the time of issuing this statement.
Which ETPs have RBI permission?
The Reserve Bank has also made it clear that if you want to get factual information about the legal status of any person doing foreign exchange transactions or ETP, then for this you have to see the list of authorized persons and ETPs, Which is available on this page of the Reserve Bank’s website. (https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4080) Transactions in foreign currency should be carried out only with the persons listed in this list and with ETP. That too only for those activities which are not prohibited under the Foreign Exchange Management Act (FEMA). According to the Reserve Bank, forex transactions permitted under FEMA can also be done electronically, but only through ETPs authorized by RBI or recognized stock exchanges (for example – NSE, BSE, or Metropolitan Stock Exchange). of India) only.
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