Overseas Forex trading Prohibited via Internet trading portals - Don't Fell Into Trap

When you search Forex Trading online, you will see a lot of portals that promise you high returns on the basis of Trading Foreign Currency. But are you aware that this is not allowed. RBI recently released a circular that was shared with me by HDFC. I am adding the entire details below with FOREIGN EXCHANGE MANAGEMENT ACT, 1999 PDF file. Read these things below before going on for Forex Trading. 

We wish to bring to your notice the following instructions as issued by the Reserve Bank of India vide its circular dated Sep 17, 2013 - HDFC


  1. Remittance in any form towards overseas foreign exchange trading (including through electronic/Internet trading portals or by use of credit/debit cards) is strictly prohibited and accordingly, the customers are cautioned not to remit or deposit money or utilize their credit/debit cards for such transactions.
  2. Further, any person, resident in India collecting and effecting / remitting payments directly /indirectly outside India in any form towards overseas foreign exchange trading through electronic/Internet trading portals would make themselves liable for proceedings for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.
  3. Banks are required to report such prohibited overseas foreign exchange trading transactions on the credit/debit cards to the Reserve Bank of India.

In view of above, the bank would be constrained to take necessary action by closing credit/ debit cards in case of any “overseas forex trading" transactions observed on your card account and report the same to the regulator. Hence we earnestly request you to refrain from using your credit/debit card for the above mentioned nature of transactions.

FOREIGN EXCHANGE MANAGEMENT ACT, 1999 PDF File For Reference. FEMA Act File Download

Comments

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  2. UnknownApril 2, 2018 at 3:24 AM

    Does Overseas Forex Trading From India – Legal or Illegal. what are RBI rule and regulation for Forex trading from India using online portals Overseas Forex Trading Rules

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  3. UnknownApril 2, 2018 at 3:27 AM

    Is There any Legal Way to Trade in Forex for Indians?

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  4. UnknownMay 17, 2018 at 10:24 AM

    Hi
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  6. vaishnavi pavitradasFebruary 18, 2019 at 10:50 PM

    Thanks for the blog it will really help in trading overseas....

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  8. Honor FxJune 8, 2019 at 11:20 AM

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  9. Jayden RichJuly 25, 2019 at 11:38 PM

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