RBI goes tough on online forex trading

In a desperate bid to save the rupee from falling further, the Reserve Bank of India has asked banks to close accounts of customers undertaking online forex transactions

GN Bureau | September 19, 2013

Those undertaking forex trading transactions using debit/credit cards, beware! The Reserve Bank of India has directed banks to close accounts of customers undertaking such transactions that have been banned. 

In a notification issued on Wednesday, the RBI has asked banks to block the card or account of any customer making such transactions and has also warned banks against inaction.

“If it is observed that a bank has failed to carry out the measures as outlined above, Reserve Bank of India may proceed against the defaulting bank and take any action as may be deemed necessary,” the notification stated.

The regulator has said that customers continue to undertake online trading in foreign exchange on different portals offering such schemes wherein they make payments from their Indian bank accounts to foreign entities and in turn receive cash refunds from them.

Most of these transactions on portals are done on margin basis with huge leverage or on an investment basis, where returns depend on forex trading.

The apex bank has been trying to curb the offshore rupee market after the rupee hit new lows ove the last couple of months. Banks have been instructed to cut down on overnight positions. In addition, the apex bank has slashed the limit for remittances made by residents from $200,000 to $75,000 per year.



Other News

BMC announces Rs 52,619.07 crore budget

Mumbai’s municipal commissioner and administrator Iqbal Singh Chahal on Saturday announced a Budget of Rs 52,619.07 crore for 2023-2024, an increase of 20.67% over a revised budget estimate of Rs 43607.10 crore for 2022-23. The overall budget size has doubled in five years. In 2017-18

Making sense of the ‘crisis of political representation’

Imprints of the Populist Time By Ranabir Samaddar Orient BlackSwan, 352 pages, Rs. 1105 The crisis of liberal democracy in the neoliberal world—marked by massive l

Budget: Highlights

Union minister of finance and corporate affairs Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday. The highlights of the Budget are as follows: PART A     Per capita income has more than doubled to Rs 1.97 lakh in around

Budget presents vision for Amrit Kaal: A blueprint for empowered, inclusive economy

Union Budget 2023-24, presented by finance minister Nirmala Sitharaman in the Parliament on Wednesday, outlined the vision of Amrit Kaal which shall reflect an empowered and inclusive economy.  “We envision a prosperous and inclusive India, in which the fruits of development reach all regions an

Soumya Swaminathan to head M S Swaminathan Research Foundation

Former World Health Organisation (WHO) chief scientist Soumya Swaminathan takes charge as chairperson of M S Swaminathan Research Foundation (MSSRF) from February 1.   Founded by her father, the legendary agricultural scientist M S Swaminathan, MSSRF was set up to accelerate the use of m

m-Governance: Key to Digital India

The digital revolution is being led by India. Digital governance is a key component of the government's ambition to transform India into a society where everyone has access to the internet. It includes both M-governance and E-governance, which are major methods for the delivery of services via mobile devic

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Current Issue


Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter