RBI Reiterates Ban on Foreign Exchange Remittances for Lotteries Under FEMA 1999; Violations May Lead to Legal Action.

The Reserve Bank of India (RBI) issued a circular to all authorized dealers in foreign exchange, reiterating the prohibition on remittances for participation in lottery schemes or similar activities under the Foreign Exchange Management Act, 1999. This includes payments made by residents using cash, drafts, credit, or debit cards, as well as payments by non-residents on behalf of residents. Violations may lead to legal proceedings. Authorized dealers are urged to publicize these instructions widely to inform the public. The circular is issued under specific sections of the Foreign Exchange Management Act, 1999.

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