December 11, 2007
Reserve Bank of India (RBI) revealed that schools and hospitals
have been lured by foreign entities and sometimes their Indian
representatives with deceptive purposes.
RBI has advised the public not to get into the trap of such
fictitious offers for release of cheap funds, claimed to have
been remitted by overseas entities to banks. RBI has also notified
public against making any remittances by taking part in such
schemes from unfamiliar entities.
Speaking on the modality of such offers, RBI has said foreign
entities, including Indian representatives of such entities,
make offers through email of huge money in foreign currency
to residents including schools and hospitals on the pretext
of helping them in their business.
Once a contact is established, the offer is followed by a request
seeking details of bank account of the Indian entity asking
some amount to be remitted to them as initial deposit/commission
so that the offer money could be transferred.
The major reason of worry for the central bank is that many
individuals still do not know that RBI bars sending money outside
for purchasing lottery tickets or maintaining leveraged trading
positions overseas or for speculating in commodity exchanges
abroad.
Under the Foreign Exchange Management Act, 1999, RBI clarifies
that remittance in any form towards participation in lottery
schemes is prohibited. The same is 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/awards etc.
The Reserve Bank of India has further clarified that it does
not maintain any account in the name of individuals/ companies/
trusts in India to hold funds for disbursal," RBI said
in a circular to all banks.