Online Forex Trading Banned in India for Individuals

Online Forex Trading Banned in India for Individuals

Dear folks, I got a registered mail document from HDFC Bank on Saturday the 5^th of 2013 clearly addressed to me that the bank regularly monitors all the credit cards and online banking transactions and on one such instance, it had observed online foreign exchange transactions from my card.

The bank stated that under the purview of FEMA (Foreign Exchange Management Act), the intended to bring to my notice the following instructions as issued by the Reserve Bank of India vide its circular dated September 17, 2013.

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 credit / debit card for such transactions.

2.       Further, any person resident in India collecting and effecting/remitting such payments directly/indirectly outside India would make himself/herself liable to be proceeded against with 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 credit / debit cards to the Reserve Bank of India.

With above points, it is the best to refrain from doing any online forex trading transactions directly / indirectly. Still, I’m worried about how to get back my little deposited money from forex trader!

Talent Grooming, Skill Training, Activity Development Program

Dear friends, satisfaction comes in different was to different mindset, my current goal is to start a Skill Training and Activity Development Center in my native for students who come from poor background from surrounding villages and who cannot offer or get access to make themselves with talent and skills as demanded by industry market as of today. I had been worked as lecturer in an Engineering College in my small town and have come to know about what stops the students to upgrade their skills apart from what the institution has taught to them.

I used to gives tips and trainings to students on how to develop skills while studying in college itself and get pocket money or make themselves to pay their tuition fees. I have trained many students to earn online from blogging which develops their English and also brings updates of their fields of interest to website developments, etc. Currently, I have sponsored a computer, printer with my business internet connection to a few students.

For the past many months, I’m getting requests from many students who want to learn and earn and who do not have computer access or internet. I want to assist them by to train and develop their skills by moving to a larger space and adding four computers. I’m aiming to raise $2800 to bring the facility and computers and ask of you friends to chip in at any level as you feel comfortable to propel this positive work and help build this as collective effort for this project.

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Forex Trading Explanation - Halal or Haram?

A comment from a brother Abdul in the belo article link:

Islamic law prohibits charging interest when you lend money. But it is all right to borrow money (without paying any interest) and use them to run your business. And this is exactly what leverage in forex does. Yes, you have to repay the borrowed money back to the forex broker even if your trade is not profitable. But you would do the same if you were a barber and took a loan from a bank or from your uncle. Leverage is not against Islam!


And spread is not against Islam either. You pay few pips as a transaction fee. You always pay transaction fees when you are moving money (or goods) around. This is all right.

The only thing that it against Islam is rollover interest. But you can avoid it if you use a forex broker with a swap-free account. The article is right in this regard.

Link: http://www.forex-learning-site.com/blog/2008/5-cheapest-forex-brokers-with-islamic-swap-free-accounts/