Payset prespective
September 15, 2022

India’s Central Bank Is Restricting Forex Trading Platforms

The RBI has issued an “alert list” to discourage Indian citizens from trading foreign assets on certain platforms.

The Reserve Bank of India (RBI) has placed several forex trading platforms on an “alert list” that will prevent residents of India from accessing those services.

RBI Issues Warning Against Forex Trading

A press release published on Sept. 7 by India’s RBI warns the public against carrying out forex transactions on unauthorised electronic trading platforms.

Furthermore, it warns the public against remitting or depositing funds in connection to unauthorised forex transactions.

This week’s announcement follows a broader warning issued by the bank in February. That initial warning was motivated by a surge in misleading social media advertisements promising “disproportionate” or “exorbitant” rewards to forex traders.

That earlier warning did not caution against the use of any specific services. By contrast, this month’s announcement includes an “alert list” which identifies 34 prohibited services that are not authorised to provide forex trading under India’s Foreign Exchange Management Act, 1999 (FEMA).

Most notably, the major Israel-based trading platform eToro, which serves 20 million users in 140 countries, is included on India’s list of prohibited services.

Other notable prohibited services include FXStreet, TD Ameritrade, FXCM,, and RBI’s complete alert list can be seen here, though it is not exhaustive.

RBI does not indicate precisely how it will enforce the prohibition. However, it says that individuals who carry out forex transactions for disallowed purposes will “render themselves liable for penal action” under the Foreign Exchange Management Act.

Authorised Forex Trading Still Allowed

Though India’s new policy is restrictive, it will not prohibit forex transactions entirely.

Instead, RBI says that individuals are permitted to carry out forex transactions “with authorised persons and for permitted purposes.”

This means that only authorised electronic trading platforms and stock exchanges are permitted to handle forex transactions. RBI names the National Stock Exchange of India and Metropolitan Stock Exchange of India as examples of authorised services.

Furthermore, India’s forex restrictions seem to apply primarily to profit-oriented trading services. They do not seem to apply to services that facilitate cross-currency transactions and payments.

At Payset, we currently serve customers in India and over 200 other countries, and we will continue to do so indefinitely.

We offer both a currency exchange and multi-currency accounts, with support for 34 foreign currencies including the the Indian rupee.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset allows you to receive payments in 34 currencies. You can send payments from your account in 38 currencies. For more details, check our payment guide.

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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