Debit or Credit Card for Online Forex Trading

Online, November 6, 2013 (Newswire.com) - Reserve Bank of India has directed the banks to close the banking accounts of those customers who are using their debit or credit cards for the prohibited transactions like online forex trading. This type of transaction is not approved by RBI and hence if the bank comes across any sort of fraudulent transactions then it will immediately deactivate the card as well as the account. RBI has also further added the banks not implementing the above directives may have to face strict measures from RBI against them.

Online banking and banking with debit or credit card is becoming more and more popular with people all over the world using this convenient banking process to carry out various online transactions ranging from booking a ticket to buy a property. This technological advancement has made the task easier for the users but at the same time this advanced technology has also given rise to fraudulent transactions that were otherwise not possible with retail banking. This latest move by RBI is also the step towards checking the potential fraud and cheating in online transaction.

The forex trading thus made by the banking customers was mainly based on the margin trading and the huge leverage. The customers used to pay funds from their Indian accounts to the overseas bank through their debit or credit card while the same was refunded in the same cards or bank accounts.
This entire cycle of this transaction is the form of forex trading and may good sum to the user. RBI has therefore prohibited this trading style as it as lot of risk involved and also this trading type is not recommended in India.
Thus, beware of using your debit card or credit card for prohibited transactions else you will end up losing your account.

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