
Concerned by recent arrests and rising illegal forex activity, the Reserve Bank of India (RBI) is ramping up its crackdown. Working with banks and the government, they aim to tighten controls and protect the public from financial scams.
The arrest of two Kolkata businessmen earlier this year, managing 180 bank accounts for illegal forex trading, exposed the need for stricter measures. The RBI has built a watchlist of 75 unauthorized platforms and websites involved in such activities.
In a proactive move, the RBI sought suggestions from stakeholders on tackling illegal forex trading and boosting public awareness. They emphasize stricter Know Your Customer (KYC) norms for all parties involved in forex transactions and closer collaboration with banks.
Banks are expected to propose additional technology solutions to enhance oversight, while the Ministry of Electronics and Information Technology (MeitY) will aid in identifying illegal platforms. The RBI seeks to leverage technology and inter-departmental cooperation to effectively curb these harmful activities.
Repeated warnings have been issued against unauthorized entities, highlighting the legal consequences for Indian residents engaging in such transactions under the Foreign Exchange Management Act (FEMA). Awareness campaigns are a crucial part of the strategy, as the RBI aims to educate the public about the risks and misleading advertisements promoting these unauthorized platforms.
This collaborative effort between the RBI, banks, and government agencies demonstrates a strong commitment to combating illegal forex trading and protecting Indian citizens from financial harm.