Those dealing in foreign currency on illegal platforms should be alert, RBI gave this warning

The Reserve Bank of India (RBI) has warned people to invest money in foreign currency. The central bank has said that the public needs to be extremely careful about foreign exchange transactions on illegal electronic trading platforms (ETPs). It has been said on behalf of the bank that the person doing such transaction will be eligible for penal action under the Foreign Exchange Management Act.

Gives assurance of high returns

RBI has advised investors to be cautious while investing or transacting in foreign currency. In particular, there is a warning about such illegal foreign exchange trading platforms, which have emerged in the recent days in scale. These platforms give people the assurance of high returns and fall prey to their bluffs. RBI has said that action can also be taken to impose penalty on transactions in foreign currency through illegal ETPs for purposes other than those prescribed under the Foreign Exchange Act (FEMA). Let us tell you that ETP is such an electronic system different from the stock exchanges, where trading of shares or foreign currency can be done. However, these platforms need to take permission from RBI.

People are losing money by falling in the trap

In a statement issued in this regard by the central bank, it has been said that people should transact in foreign currency only on the authorized platform. RBI said that a large number of misleading advertisements of illegal ETP are showing on social media, search engines including gaming apps and they are working to mislead people. These trading platforms also make personal contact with people and give the promise of huge profits. In recent times, there has been a spurt in such complaints, wherein investors have lost their hard earned money due to fraud.