News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Rediff.com  » Business » RBI warns public against fictitious fund offers

RBI warns public against fictitious fund offers

Source: PTI
Last updated on: July 30, 2009 21:40 IST
Get Rediff News in your Inbox:

Cautioning public against fictitious offers of large funds from unknown entities, the Reserve Bank of India on Thursday advised them again to not get carried away by such offers.

"The Reserve Bank of India, has today once again clarified that remittance in any form towards participation in lottery schemes is prohibited under the Foreign Exchange Management Act, 1999," RBI said in a release.

Further, the RBI said that restrictions are also applicable on remittances for participation in lottery-like schemes functioning under different names.

The central bank clarified that it neither maintains any account in the name of individuals, companies or trusts in India to hold funds for disbursal nor does it allow individuals to open an account to deposit money with the Reserve Bank.

"The Reserve Bank has advised the public not to remit or deposit money in such accounts in response to fictitious offers/ representations. The public may immediately bring the details of such offers to the notice of local police authorities for booking the culprits," the release added.

The warning comes in the wake of many people falling prey to such tempting offers and losing money in the recent past. The central bank has also cautioned the public in the past asking them not to make any remittance towards participation in such schemes or offers from unknown entities.

The Reserve Bank further said that in addition to making offers through letters, e-mails, mobile phones, the fraudsters have now resorted to issuing certificates, letters, circulars on letter head that looks like that of the RBI's.

"The fraudsters also convince the victims by impersonating as senior officials of the Reserve Bank," it said.

The central bankĀ  said that many fraudsters have even opened accounts with banks in India and advised public to deposit money in these accounts.

"Once the money is deposited in their account, people mailing such offers withdraw the money and then vanish. The victim thus loses the money already paid," RBI said.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
Related News: Reserve Bank of India, RBI
 

Moneywiz Live!