RBI released the updated list of unauthorized forex apps and websites

On 10th February 2023, RBI announced the latest “Alert List” of some suspected platforms/websites/entities which are not authorized to operate in forex under the Foreign Exchange Management Act. They are not authorized to function as an electronic trading platform (ETP) for forex transactions.

The updated list consists of 48 names including Tickmill, Pocket Option, Pepperstone, FP Markets, Quotex that appears to be unauthorized. However, this list also includes such entities which are seen promoting some unauthorized platforms claiming to be offering training services.

A comprehensive list of names is given by RBI, stating that any such unauthorized entity which is not included in the given list must not assume that they are authorized to trade or operate electronic trading platforms in forex.   

The previous alert list given by RBI in September 2022 contained 34 such forex trading platforms, which shocked India’s online forex trading community. Now, within a few months, the updated list shows the number has increased to forty-eight. The reason is not yet clear, but it is believed that there might be susceptible threats related to money laundering, hacking, or other illegal activities associated, and hence strict measures have been taken by RBI. However, following these guidelines will help forex traders in India to carry on their trading in an efficient and risk-free manner.

However, It would be better if you always select regulated currency brokers in India as there are a few restriction imposed by SEBI – Securities and Exchange Board of India. The updated list of forex applications or websites which are banned for forex transactions announced by the Reserve Bank of India is given on its official website. Also, the central bank has warned the residents against such platforms/websites/entities, which seem to encourage ETPs/entities. 

Although online forex trading is popular in India, they are strictly regulated, and a few restrictions are implemented by the regulator. The Reserve Bank of India (RBI) is the regulatory body for forex trading in India. Also, the financial organizations providing fx trading services must be registered with the RBI. The regulations placed by the RBI are the maximum funds to be traded, the type of currencies used to trade, and limitations on certain types of transactions. Despite these restrictions, online forex trading is growing rapidly in India.