Reserve Bank of India cracks down online offshore Forex trading Internet
Raghuram Rajan cracks down Forex trading by Indians using foreign portals in new RBI policy
Reserve Bank of India (RBI) has directed banks in a circular on Tuesday, 17th September 2013 to advise their customers not to get involved in forex trading on foreign websites offering currency contract by accepting margins through online monry trasfer mechanism (PayPal etc) and credit cards.
RBI has given strict direction to close such bank accounts which are found in such online forex trading related transactions. Reserve Bank of India may proceed with actions against banks which fail to take action against such bank accounts under their control.
RBI has observed foreign portals offer forex trading on a margining basis on an invetment basis or with huge leverage. Returns on such investment are based on forex trading. The users of forex trading portals are asked to deposit the margin payments for such forex trading transactions through credit card or deposits maintaned with Indian banks.
Overall, forex trading with foreign portals hitting Indian currency hard and RBI wakes up against such online forex trading.
Indian banks can disable online account and credit card if they found it's customer involved in such forex trading with foreign portals onwards.