RBI prohibits forex remittance for foreign lotteries

The Reserve Bank of India (RBI) has extended the restrictions on overseas remittance of money towards participation in lottery or other such schemes like money circulation scheme or remittances for the purpose of securing prize money/awards etc.

Remittances towards overseas lottery schemes are prohibited under the Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery like schemes existing under different names, RBI said in a release.

RBI's move comes in the backdrop of a spate of fictitious offers of cheap funds in recent times from the fraudsters through letters, e-mails, mobile phones, SMS etc.

"Communications on fake letterheads of the Reserve Bank and purportedly signed by its top executives / senior officials are also being sent to targeted people," RBI said.

The RBI release noted that many residents have been victims of such teasing offers and have lost huge money in the process. The RBI has been alerting the public on several occasions about such fictitious schemes/offers, through the print and the electronic media and more such public education campaigns are being planned, it said.

Fraudsters, RBI noted, are seeking money from gullible people under different heads, such as processing fees/ transaction fees/tax clearance charges/conversion charges, clearing fees, etc.