Hi mate, now i have tons of doubts before i venture into this but first let make you aware of our Laws Of The Land (INDIA).
It is
illegal from what i can garner,
A1Exchangers and Merchant Status. A1Exchangers is not a financial institution and is not in the business of accepting deposits or of conducting banking operations.
If for any reason the contractual relationship between A1Exchangers and the Financial Institution is discontinued and the Cash Card is deactivated while you still have a positive Advance Limit on the Cash Card,
We will make changes on our website from time to time to assist in keeping an appropriate balance of e-currency on hand. This may result in posted exchange rates changing without any prior notice. The rate we charge will be the rate that is posted when your order has been received and funds are cleared.
# No credit checks required
# No bank account required
# Nobody is denied access to our card
# No name appears on the card
# No maximum balance
Now this is a clincher for me. Now, there is a possiblity that you might go the nearest Mastero/Cirrus ATM & get some cash out but it is all illegal, the account linked to the debit card would be some US no name account supposedly with your funds in US dollars.
Now what are the legal documents to link you with that account - NONE as according to merchant banker the account was linked to AIexch in good faith and what they did with is there problem and as they themselves confess they can change the FI linked to the card anytime.
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Now coming to the INDIAN angle of it :
Mother of all Laws FEMA :
Regulation and management of foreign exchange -
Except with the general or special permission of the Reserve Bank, no person can :-
deal in or transfer any foreign exchange or foreign security to any person not being an authorized person;
make any payment to or for the credit of any person resident outside India in any manner;
receive otherwise through an authorized person, any payment by order or on behalf of any person resident outside India in any manner;
Where any person in, or resident in India receives any payment by order or on behalf of any person resident outside India through any other person (including an authorized person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorized
Financial transaction means making any payment to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt.
No person resident in India can acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India except with the general or special permission of the Reserve Bank.
The Reserve Bank can, by regulations, prohibit, restrict or regulate the following :-
transfer or issue of any foreign security by a person resident in India;
transfer or issue of any security by a person resident outside India;
transfer or issue of any security or foreign security by any branch, office or agency in India of a person resident outside India;
any borrowing or lending in foreign exchange in whatever form or by whatever name called;
any borrowing or tending in rupees in whatever form or by whatever name called between a person resident in India and a person resident outside India;
deposits between persons resident in India and persons resident outside India;
export, import or holding of currency or currency notes;
A person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
The Reserve Bank may, by regulation, prohibit, restrict, or regulate establishment in India of a branch, office or other place of business by a person resident outside India, for carrying on any activity relating to such branch, office or other place of business.
So the point is AIexch has not been authorised by RBI in any form or manner to dole out FOREX $ - Rs or vice versa. This is simply called money laundering and is haven for "Polticians & Terrorists"
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Now about ways to get Foreign currency into India :
RFC (Domestic) Account
A person resident in India can open, hold and maintain with an authorized dealer in India, a Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and travellers cheques from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with/opened out of foreign exchange earned like proceeds of export of goods and/or services, royalty, honorarium, etc., and/or gifts received from close relatives (as defined in the Companies Act) and
repatriated to India through normal banking channels by resident individuals.
What is foreign Inward Remittances Payment System (FIRPS) ?
Ans. FEDAI has evolved the Foreign Inward Remittance Payment System (FIRPS) to facilitate quick transmission of funds to beneficiaries in India against inward remittances received from abroad through banking channels in rupees as well as foreign currencies. This system is used by authorised dealers for arranging payment of proceeds of personal remittances received from abroad in favour of resident Indians as well as for credit to Ordinary Non - Resident accounts / Non - resident (External) accounts in India of persons of Indian nationality or origin. The essence of the system is that authorised dealers must without delay convert into rupees foreign currency remittances received from abroad in the form of TTs, MTs and Pay Orders and arrange payment of the proceeds by the FIRPS instruments which are encashable at par at all branches in India of all authorised dealers and of other scheduled commercial banks who, though not authorised to deal in foreign exchange, agree to abide by regulations framed by FEDAI, governing issue and encashment of FIRPS instruments. Authorised dealers will be guided by rules and regulations framed from time to time by FEDAI with the approval of Reserve Bank in the matter of issue etc. of instruments under FIRP System. Authorised dealers may also freely employ other methods like money orders, MTs, TTs, drafts and telegraphic pay orders for transmitting inward remittances to beneficiaries but they should bear in mind the need for speed in transmitting funds to beneficiaries, particularly those living in remote parts of the country, in view of the importance attached to inward remittances.
Reference :
Foreign Exchange Management Act (FEMA)
Forex Facilities for Residents (Individuals) - Foreign Exchange Facilities for Residents (As on January 1, 2006)- RBI site
FOREIGN EXCHANGE TRANSACTIONS WITH PUBLIC
NRI Banking - Sending Money to India
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So basically Admin From A1Exchangers i have a few questions for you -
- When it comes to Obeying Indian Forex Laws do you have any Locus-Standi.
- You never reveal names of the Financial Institutions which are going to host our No Name Accounts.
- What are Legal Documents linking us to the Parent Banker.
- In all these you seem to be just acting like a intermediatry - so ultimately who is answerable just in case the deal falls off due to unforseen circumtances.
- And finally, in India dealing in Foreign Currency or Acquring Currency via back channels is deemed illegal & is dealt with capital punishment & such deals called "Hawala/Benami" are generally used by Not so ideal citizens if you know what i mean.
- Only persons authorised by RBI(Reserve Bank Of India) are authorised to appoint banks/money exchangers etc who can deal with such matters and with certain precautions.
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