RBI CAUTIONS AGAINST ILLEGAL FOREX TRADING, ADVISES BANKS AND CUSTOMERS.
Why in the news?
RBI warns against illegal forex trading through unauthorised entities, instructs banks to report to the Enforcement Directorate.
source:ET
About RBI Alert: Unauthorised Forex Trading
- The Reserve Bank of India (RBI) has issued a cautionary circular to banks and customers regarding unauthorised entities offering forex trading with promises of high returns.
- These entities engage local agents to open accounts at various bank branches for collecting money towards margin, investment, and charges, facilitating illegal forex trading.
- Banks are instructed to report such activities to the Enforcement Directorate (ED) and advise customers to engage only with authorised persons for forex transactions, promoting vigilance and caution to prevent misuse of banking channels.
What Is Forex (FX)?
About Enforcement Directorate:
Nodal Ministry: Department of Revenue, Ministry of Finance. Objectives: Enforcing FEMA, PMLA, and FEOA to combat economic offences. |