RBI red flags unauthorised forex trading platforms, warns of penalties

Cautions public against undertaking forex deals on unauthorised electronic trading platforms, or remit and deposit money for such transactions

The Reserve Bank of India (RBI) on Thursday cautioned the public against undertaking forex transactions on unauthorised electronic trading platforms (ETP), or remit and deposit money for such unauthorised transactions.

“While permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges (National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.) as per the terms and conditions specified by the RBI from time to time,” the central bank said in a statement on its website.

Any individual who undertakes foreign exchange