RBI warns against ponzi schemes and scams - know signs to identify

The Reserve Bank of India (RBI) has asked people to beware of ponzi schemes and scams as it can cause huge monetary loss to a person.

It can be noted that ponzi schemes and scams are fraud schemes or scams which asks people to invest certain amount in it and get good profits.

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In order to protect people from these kind of schemes, the Reserve Bank of India has shared certain singns of ponzi schemes and scams which one needs to know. Check it here:

1. Schemes offering rewards for enrolling friends, family, and/ or appointing distributors.

2. Offer for free services from unknown entities and websites.

3. Entity or the Sales Person is not authorised by RBI, IRDAI, SEBI, NHB.

4. Emails/SMS from unknown individuals or regulators or government organisations asking for your bank account details. For example:  Messages informing you that you have received a tax refund of Rs 90,000.

5. Telephone calls which either offer rewards or threaten prosecution, penalty, etc. For example: Your card has been blocked, to unblock, can you share your old PIN?

6. Attractive marketing material with complex and new investment options, with the sales person following up daily and offering incentives for early registration or saying that the scheme is available for only a limited period.

7. Promise of returns on investments that are much higher than those offered by banks.