RBI adds 19 unauthorized forex trading platforms to Alert List, taking the total to 75; urged citizens to remain vigilant

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  • RBI adds 19 more entities, platforms, and websites to the Alert List of unauthorized forex trading platforms. 
  • These entities are not authorized to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA)  
  • They are also not authorized to operate an electronic trading platform (ETP) for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directions, 2018. 
  • The Reserve Bank said the Alert List also contains names of entities/platforms/websites that appear to be promoting unauthorized entities. 
  • The apex bank regulatory body slapped penalties totaling ₹10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of norms. 
  • Earlier on 23 November, the RBI imposed monetary penalties on five cooperative banks for deficiencies in regulatory compliance. 

The Reserve Bank of India on 24 November updated the ‘Alert List’ of unauthorized forex trading platforms by adding 19 more entities, including FX SmartBull, Just Markets, and GoDo FX, taking the total to 75.

According to the list, these entities are neither authorized to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA) nor to operate an electronic trading platform (ETP) for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directions, 2018.

The other entities added to the list are Admiral Market, BlackBull, Easy Markets, Enclave FX, Finowiz Fintech, FX SmartBull, Fx Tray Market, Forex4you, Growing Capital Services, and HF Markets. Other platforms are HYCM Capital Markets, JGCFX, PU Prime, Real Gold Capital, TNFX, Ya Markets, and Gate Trade.

In a statement, the Reserve Bank said the Alert List also contains names of entities/platforms/websites that appear to be promoting unauthorized entities. “The list is not exhaustive,” it said and added an entity not appearing in the list should not be assumed to be authorized by the RBI. Accordingly, the number of illegal entities has increased to 75.

RBI has said that these entities are neither authorized to deal in forex under the Foreign Exchange Management Act, 1999 nor authorized to operate electronic trading platforms – ETP for forex transactions.

RBI has urged citizens to remain vigilant and ascertain the legality of the entity by checking its credentials from the RBI’s website, wherein the apex bank regularly publishes the List of Authorised Persons and ETPs that are allowed to undertake forex transactions.

Earlier in the day, the apex bank regulatory body slapped penalties totaling ₹10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of norms. The apex bank regulatory body made it clear that the action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The RBI imposed a penalty of ₹one crore on Indian Overseas Bank, ₹5 crore on Citibank, and ₹4.34 crore on the Bank of Baroda. Earlier on 23 November, the RBI imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance.

(With inputs from agencie

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