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The Reserve Bank of India (RBI) has issued an “Alert List” of entities that are neither authorised to deal in foreign exchange under the Foreign Exchange Management Act, 1999 (FEMA), nor authorised to operate electronic trading platforms (ETPs) for forex transactions. The alert list, placed on the RBI website, aims to caution the public against transacting with unauthorised entities.
The RBI had earlier, through a press release dated February 3, 2022, warned the public not to undertake forex transactions on unauthorised platforms or remit/deposit money for such transactions. Despite this, the RBI continues to receive queries regarding the authorisation status of certain ETPs.
The RBI clarified that the alert list is not exhaustive and reflects the entities known to the RBI at the time of the release. An entity not appearing on the list should not be assumed to be authorised. The authorisation status of any person or ETP can be verified from the RBI’s lists of authorised persons and authorised ETPs available on its website.
The RBI reiterates that resident persons can undertake forex transactions only with authorised persons and for permitted purposes under FEMA. While permitted forex transactions can be executed electronically, they should be conducted only on RBI-authorised ETPs or recognised stock exchanges, including NSE, BSE, and MSEI.
Members of the public are strongly cautioned against conducting forex transactions on unauthorised platforms or remitting funds for such transactions. Doing so may attract legal action under FEMA.
[RBI]