Money & Banking

RBI asks banks to keep watch over online forex trading payments

Our Bureau Mumbai | Updated on November 17, 2011 Published on November 17, 2011

The Reserve Bank of India has asked banks dealing in foreign exchange (forex) to exercise due caution and be extra vigilant in respect of transactions that require residents to make margin payments for online forex trading transactions.

Card issuing companies should also remain alert against permitting payments for such unauthorised transactions, the RBI said in a notification.

The central bank's observed that it has come across cases where overseas foreign exchange trading has been introduced on a number of Internet/electronic trading portals luring the residents with offers of guaranteed high returns from such forex trading.

Most of the forex trading through the portals is done on a margining basis with huge leverage or on an investment basis, where the returns are based on forex trading.

Published on November 17, 2011
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