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This move highlights the RBI’s proactive stance in safeguarding Indian consumers.
RBI Governor has voiced strong concerns about the issue.
The Reserve Bank of India (RBI) has intensified its efforts to clamp down on unauthorised forex trading activities. They banned 13 such platforms that were found violating the country’s forex trading regulations. In an update to its alert list released on Tuesday, the RBI named these platforms and emphasised that they are not permitted to engage in foreign exchange transactions or electronic trading of forex in India. The 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 have been operating without the necessary authorisation, which is mandatory for conducting such trades within India’s regulatory framework.
This move highlights the RBI’s proactive stance in safeguarding Indian consumers from potentially harmful financial practices and ensuring that all foreign exchange trading adheres to legal standards. The central bank regularly updates its alert list to inform the public about platforms that pose risks due to non-compliance with India’s forex trading rules.
RBI has also clarified that if the name of an entity is not in this list, it does not mean that it is authorised for forex trading. The central bank has said that this list is not exhaustive, and all investors should get complete information about the legality of the platform before starting trading. In April this year, RBI Governor Shaktikanta Das voiced strong concerns about the rise of unauthorised 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 his remarks, the RBI instructed banks to adopt a stringent approach to curb illegal forex trading activities.
This recent action reflects a continuation of the RBI’s efforts, which began with a warning in 2022 about the risks involved with unauthorised forex platforms that often use deceptive tactics to attract investors.
