NEW DELHI, AUGUST 11, 2004
IANS
The Reserve Bank of India on Wednesday warned students, organisations
and entrepreneurs against taking up offers by Non-Resident Indians 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 said.
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.
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.