RBI Takes Strong Action Against Forex Crimes

RBI Takes Strong Action Against Forex Crimes

The Reserve Bank of India (RBI) is intensifying efforts to curb illegal forex trading, engaging with banks and the government for more robust measures. Following the arrest of two businessmen involved in illicit activities earlier this year, the RBI has named 75 entities in its alert list comprising unauthorised platforms dealing in foreign currency.

The central bank issued a letter to stakeholders seeking suggestions on enhancing measures and promoting public awareness. Officials indicate increased scrutiny by banks on forex transactions through non-authorized platforms, emphasising adherence to Know Your Customer (KYC) norms.

To bolster these efforts, the Ministry of Electronics and Information Technology (MeitY) is collaborating with the RBI to identify additional illegal platforms. The RBI focuses on preventing forex transactions on social media platforms and urging participation in awareness programs. Permitted forex transactions must occur on RBI-approved platforms or recognised stock exchanges, underlining the need for enhanced technology controls.

The central bank has identified misleading advertisements of unauthorised electronic trading platforms (ETPs) offering forex facilities to Indian residents, including on social media, search engines, and gaming apps. Entities such as Alpari, AnyFX, AvaTrade, and eToro have been flagged.

Over the past two years, the RBI has issued advisories cautioning against dealing with unauthorised entities, emphasising legal consequences for residents engaging in prohibited forex transactions. As the RBI collaborates with banks to propose additional controls, the initiative underscores the determination to clamp down on illicit forex activities within India’s financial landscape.

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Robin Villiers is a finance analyst since 2014 in Forex with over 9+ years of experience. He is a finance graduate from University of London, UK. He is a true writing freak and is well versed in analysing trading strategies & indicators and tested 70+ brokers to provide access to important information to traders. Villiers is able to boil down the given projects into logical information necessary to make the right decision. He always carries a professional outlook and gives knowledge driven inputs in every area of finance.
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