Just got this circular and message from my bank: http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8427&Mode=0 ,
"As you may be aware that trading in foreign exchange (including through electronic/internet trading portals) is prohibited under the Foreign Exchange Management Act (FEMA), 1999."
Further, the Reserve Bank of India (RBI) has clarified that remittance in any form towards overseas foreign exchange trading (including through electronic/internet trading portals or by use of credit/debit cards) is not permitted. RBI has cautioned that any person resident in India collecting and effecting / remitting payments directly /indirectly outside India in any form towards overseas foreign exchange trading through electronic/internet trading portals would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.
Accordingly, please take note of the prohibitions on using your credit/debit card for such unauthorized transactions in contravention to the FEMA & regulations thereunder and that violation(s), if any, would attract penalties or as RBI or the
Enforcement Directorate may initiate against such residents.
If bank comes across any prohibited transaction undertaken by the Cardholder vide credit card or online banking, the bank will immediately close the card and report the same to Reserve Bank of India
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