RBI Governor Shaktikanta Das, on April 8, emphasized the need for banks to exercise caution regarding unauthorized foreign exchange trading platforms. He pointed out that certain individuals or entities are utilizing banking channels to finance activities on such platforms. Speaking at the FIMMDA-PDAI Annual Conference in Barcelona, Das urged banks to heighten their vigilance in response to this trend.
According to Das, “We continue to see banking channels being used by certain persons or entities to fund activities on unauthorized FX trading platforms. This warrants enhanced vigilance by the banks.”
In 2018, the central bank introduced a framework for the authorization of electronic trading platforms. The aim was to ensure that only entities adhering to a robust set of conditions operate in RBI-regulated financial markets.
Subsequently, the framework was updated to reflect advancements in technology that have accelerated the electronification of financial markets.
In response to complaints of cheating and fraud associated with unauthorised trading platforms, the RBI Governor issued cautionary advice against engaging in forex transactions on such platforms. On June 7, 2023, the central bank expanded its alert list to include eight additional entities suspected of operating unauthorised forex trading platforms.
The newly added entities are QFX Markets, 2Win Trade, Guru Trade7 Limited, Bric Trade, Rubik Trade, Dream Trade, Mini Trade, and Trust Trade, as stated in a press release by the central bank.
The Alert List serves as a warning, featuring names of entities unauthorized to conduct forex dealings or operate electronic trading platforms (ETP) for forex transactions.
As of June 7, 2023, the updated Alert List comprises 56 platforms or websites. Among the notable names are Binomo, Olymp Trade, and OctaFX.