Business Daily from THE HINDU group of publications
Saturday, Dec 08, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Dec 08, 2007 ePaper | Mobile/PDA Version |
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Money & Banking
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Forex Web Extras - Economic Offences RBI cautions public against remittance frauds Our Bureau Mumbai, Dec. 7 The Reserve Bank of India has cautioned people not to fall prey to fictitious offers for release of cheap funds claimed to have been remitted by overseas entities to banks in India or the RBI. The warning comes in the wake of international e-mail frauds and lottery scams, where people have lost money by believing unknown entities making claims of a lottery in store for the unsuspecting victim. Public should not make any remittance towards participation in such schemes or offers from unknown entities, an RBI note said. Describing the modality of such offers, the RBI stated that certain foreign entities or individuals, including Indian residents acting as representatives of such entities, make offers through letters or e-mails, of huge money in foreign currency to resident individuals (including schools / hospitals), on the pretext of helping them in their business or ventures in India. Once the contact is established, the offer is followed by a request seeking details of the bank account of the individuals or Indian entity and asking some amount to be remitted to them as initial deposit / commission so that the offer money could be transferred. Likewise, references have been also received in the RBI in the recent past from individuals and authorised dealers seeking approvals or clarifications for effecting remittances in foreign currency towards commission or fees for receiving prizes won in overseas lottery schemes etc, the note said. It has also come to the notice of the RBI that certain overseas organisations have been advising individuals / companies and trusts in India that huge sums of money for disbursal of loans in India at cheap rates has been kept in an account with the RBI and the funds would be released after approval from the apex bank.
To substantiate their claims, even copies of certificate / deposit receipts purported to have been issued by the RBI are produced by such operators. The RBI clarified that remittance in any form towards participation in lottery schemes is prohibited under Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery-like schemes functioning under different names, such as, money circulation scheme or remittances for the purpose of securing prize money / awards, etc. The apex bank further clarified that it does not maintain any account in the name of individuals / companies or trusts in India to hold funds for disbursal. More Stories on : Forex | Economic Offences | RBI & Other Central Banks
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