Important Update regarding Forex Trading for Indians By HDFC Bank

Overseas Forex trading through Internet trading portals.

We wish to bring to your notice the following instructions as issued by the Reserve Bank of India vide its circular dated Sep 17, 2013

1. Remittance in any form towards overseas foreign exchange trading (including through electronic/Internet trading portals or by use of credit/debit cards) is strictly prohibited and accordingly, the customers are cautioned not to remit or deposit money or utilize their credit/debit cards for such transactions.
2. Further, any person, resident in India collecting and effecting / remitting payments directly /indirectly outside India in any form towards overseas foreign exchange trading through electronic/Internet trading portals would make themselves liable for proceedings for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.
3. Banks are required to report such prohibited overseas foreign exchange trading transactions on the credit/debit cards to the Reserve Bank of India.
   In view of above, the bank would be constrained to take necessary action by closing credit/ debit cards in case of any “overseas forex trading" transactions observed on your card account and report the same to the regulator. Hence we earnestly request you to refrain from using your credit/debit card for the above mentioned nature of transactions.
   Thanking you for your continued patronage.

( Source : Email received from HDFC Bank )