MUMBAI, DECEMBER 7: The Reserve Bank of India (RBI) has cautioned the public not to fall prey to fictitious offers for the release of cheap funds claimed to have been remitted by overseas entities to banks in India as well as the RBI. It has also warned against making remittances in any form towards participation in overseas lottery schemes.
Members of the public should also not make any remittance towards participation in such schemes/offers from unknown entities,” the RBI warned.
Describing the typical modality of such offers, RBI stated that certain foreign entities/individuals, including Indian residents acting as representatives of such entities or individuals, make offers through letters and emails of large amounts of money in foreign currency to resident individuals and entities (including schools/hospitals) on the pretext of helping them in their businesses or ventures in India.
Once the contact is established, the offer is followed by a request seeking bank account details of the individuals or the Indian entity and asking for some amount to be remitted to them as an initial deposit or commission so that the offer money can be transferred. “Likewise, references have been also received in the Reserve Bank in the recent past from individuals and authorised dealers seeking approvals and clarifications for effecting remittances in foreign currency towards commission or fees for receiving prizes won in overseas lottery schemes etc,” the RBI said.
It has also come to the notice of the Reserve Bank that certain overseas organisations have been advising individuals, companies and trusts in India that huge sums of money for disbursal of loans in India at cheap rates has been kept in an account with the Reserve Bank and the funds would be released after the bank’s approval. To substantiate their claims, such operators produce copies of certificates or deposit receipts purported to have been issued by the Reserve Bank.
Remittance in any form towards participation in lottery schemes is prohibited under the Foreign Exchange Management Act, 1999, RBI clarified. Further, these restrictions are also applicable to remittances for participation in lottery-like schemes functioning under different names, such as, money circulation scheme or remittances for the purpose of securing prize money and awards. The RBI has further clarified that it does not maintain any account in the name of individuals, companies and trusts in India to hold funds for disbursal.
