Mumbai, April 24 -- In a major crackdown on "unauthorized" entities indulging in foreign exchange trading, the Reserve Bank of India (RBI) has warned of strict action against such transactions and people involved.
The RBI has come across instances of such entities offering forex trading facilities to Indian residents with promises of disproportionate/exorbitant returns, the RBI said in a statement adding that "there is a need for greater vigilance to prevent the misuse of banking channels in facilitating unauthorised forex trading."
On investigation, it has been observed that to facilitate unauthorised forex trading, these entities have taken recourse to engaging local agents who open accounts at different bank branches for collecting mon...