My Life and My Time: Online Forex Trading Banned in India for Individuals

Tuesday, October 8, 2013

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!

1 comment:

Lite Forex said...: Thanks for sharing this post with us. I surprised from your this post. i think Forex trading not close form India.
forex trading online; October 8, 2013 at 5:31 PM

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