RBI warning on quick money offers from NRIs

Wednesday, 11 August 2004, 19:30 IST
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NEW DELHI: The Reserve Bank of India (RBI) Wednesday warned students, organisations and entrepreneurs against taking up offers by non-resident Indians (NRIs) promising rich returns on deposits. "Public at large are cautioned not to fall prey to such fictitious offers or become victim of the foul play of such miscreants," the central bank said in a statement. In the guise of helping individuals set up business or get rich through lottery schemes, "certain foreign entities/individuals, including Indian residents," have been sending offers through e-mails, the RBI said. Many of the cases brought to the notice of the central bank revealed that unscrupulous individuals are targeting students, schools, institutions, hospitals, organisations and entrepreneurs, bank officials said. "Once a response (to the e-mail) is received, a request either for opening a foreign currency account or seeking details of bank accounts or asking for some small amount as initial deposit is made, so that the offer money can be transferred," the RBI said. By claiming to have permission from the RBI or saying that the scheme is an approved one, the frauds have been gaining confidence of individuals. "Many students and entrepreneurs are getting duped by the scheme. Eager to get higher returns on their investment, individuals have been making deposits, which the frauds claim are being deposited with the RBI. However, on inquiry later, the trusting individuals have been found to be duped," a senior official told IANS. Referring to the lure of quick money through lotteries, the RBI has reminded the people that any form of remittances for participation in a lottery scheme is not permitted under the Foreign Exchange Management Act 1999 (FEMA). Besides participation and remittances in foreign currency, the RBI has emphasised that any scheme offering earnings in dollars or any other foreign currency on incremental basis with a number of people participating is not allowed. Such schemes are akin to fraudulent money circulation, the central bank said.
Source: IANS
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