Last update:October 25, 2024, 1:17 PM IST

This move highlights RBI’s proactive stance in protecting Indian consumers.

The RBI governor has expressed strong concern over the issue.

The Reserve Bank of India (RBI) has stepped up its efforts to clamp down on unauthorized foreign exchange trading activities. They banned 13 such platforms that were found violating the country’s foreign exchange trading regulations. In an update to its alert list released on Tuesday, the RBI named these platforms and pointed out that they are not allowed to engage in foreign exchange transactions or electronic currency trading in India. Platforms identified by the RBI include Ranger Capital, TDFX, Infex, YorkerFX, Growline, Think Markets, Smart Prop Trader, Funded Next, Weltrade, FreshForex, FX Road, DBG Markets and PlusOne Trade. These entities were operating without the necessary authorization, which is mandatory for carrying out such transactions under India’s regulatory framework.

This move highlights RBI’s proactive stance in protecting Indian consumers from potentially harmful financial practices and ensuring that all foreign currency transactions comply with legal standards. The central bank regularly updates its alert list to inform the public about platforms that are at risk due to non-compliance with Indian forex trading rules.

The RBI has also clarified that if an entity’s name is not in this list, it does not mean that it is authorized for foreign exchange trading. The central bank said that this list is not exhaustive, and all investors should obtain full information about the legality of the platform before starting to trade. In April this year, RBI Governor Shaktikanta Das expressed strong concern over the rise of unauthorized forex trading platforms operating in India. He stressed the need for strict vigilance to protect investors from potential risks associated with these unregulated platforms. Following its observations, the RBI has instructed banks to adopt a strict approach to curb illegal currency trading activities.

This recent action reflects a continuation of the RBI’s efforts, which began with a warning in 2022 about the risks involved in unauthorized foreign exchange platforms that often use deceptive tactics to lure investors.