Beware of Internet fraud

Beware of Internet fraud
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First Published: Sun, Apr 13 2008. 10 26 PM IST
Updated: Sun, Apr 13 2008. 10 26 PM IST
Be wary of emails that promise to help you in your business by sending large amounts of foreign currency. It’s just a trap to get your bank account number and other details.
The Reserve Bank of India (RBI) has asked the public not to get cheated by such fictitious correspondence that offers cheap funds claimed to have been remitted by overseas entities. It has also advised people not to make any remittances towards participation in such schemes or offers coming from unknown entities.
The central bank, explaining how such offers work, has said that certain foreign entities or individuals, including Indian residents who are acting as representatives of such entities, use letters or emails to offer large amounts of money in foreign currency to a person on the pretext of helping him in his business or ventures in India. Once contact is established, a request is made for bank account details and some amount is asked to be remitted as initial deposit or commission so that the offer money can be transferred.
It has also come to the notice of the bank that certain overseas organizations have been advising individuals or companies in India that huge sums of money for disbursal of loans here at cheap rates have been kept in an account with RBI. The funds would be released after approval from the banking regulator. To substantiate their claims, such operators produce false copy of certificates or deposit receipts that they claim to have been issued by RBI. RBI has also clarified that remittance in any form towards participation in lottery schemes is prohibited under the Foreign Exchange Management Act, 1999. Further, it has clarified that it does not maintain any account in the name of individuals or companies or trusts in India to hold funds for disbursal. (Bridget S Leena/Outlook Money)
Personal loans: harder to get
Personal loans have always been an easy way of meeting sudden requirements of cash. The process of getting them is fairly easy, compared with other forms of loans. For one, the documents required are fewer and less complex. Also, the loan is given without any requirement of a collateral.
The growing number of defaults on personal loans and difficulties in recovering the money by banks are, however, leaving banks with a sour taste in the mouth.
Tough going
In future, it is likely that you will increasingly face difficulties in getting a personal loan sanctioned. In fact, there are reports that some banks have imposed a virtual ban on personal loans. Private sector banks are going slow on this front. This is in spite of the fact that, as most banking experts agree, the defaults have largely happened on loans of small ticket sizes, typically in the range of Rs20,000-30,000.
More documentation
To establish customers’ credit-worthiness, banks are going to go that extra mile and ask for extra documentation. The standard documents that a salaried professional is required to provide with the personal loan application are salary slip, income-tax return forms for the past two years, recent bank statements that show the salary being credited, proof of identity and residence and educational qualification. (Pankaj Anup Toppo/Outlook Money)
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First Published: Sun, Apr 13 2008. 10 26 PM IST