RBI warns against forex trading on unauthorised platforms

Mumbai: Requesting investors to remain vigilant, RBI has said that it has noticed a few misleading advertisements of unauthorized Electronic Trading Platforms (ETPs) offering forex trading facilities to Indian residents. RBI said that these ads are being run on social media platforms, search engines, Over The Top (OTT) platforms, gaming apps, and the like.

It added that such entities are also personally contacting people and luring them with promises of disproportionate returns. Reserve Bank said there have been reports of



frauds committed by such unauthorized ETPs where many residents have lost money. 

Stating that forex transactions must be undertaken only with authorized entities, RBI said a list of authorized persons and ETPs is available on its website along with a set of FAQs on forex transactions. The apex bank has said that residents undertaking forex transactions for illegal purposes or with unauthorized entities shall be liable for penal action under the Foreign Exchange Management Act, 1999.