RBI warns public against fictitious fund offers

Last Updated: Thursday, July 30, 2009 - 21:12

Mumbai: Cautioning public against fictitious offers of large funds from unknown entities, the Reserve Bank 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

The central bank 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."

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First Published: Thursday, July 30, 2009 - 21:12

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