"Members of the public should also not make any remittance towards participation in such schemes/offers from unknown entities," the central bank said while clarifying that sending money abroad to participate in lottery or similar schemes is not permitted under Foreign Exchange Management Act (FEMA).

The RBI has issued the warning to caution individuals who initially receive tempting offers of large funds on various pretexts from unknown overseas entities through e-mails and letters and are later requested to remit a small amount as commission for transfer of money.

The RBI clarified that under FEMA restrictions on transfer of funds also apply to lottery-like schemes functioning in different names such as money circulation scheme or remittances for the purpose of securing prize money/awards etc.

Describing the usual modus operandi of such operators, the RBI said that once the contact is established, the offer is followed by a request seeking details of bank account of the individuals and a demand for some initial deposit/commission for transfer of money.

The central bank, it said, has been receiving references from individuals in the past seeking approvals for effecting remittances in foreign currency towards commission/fees for receiving prizes won in overseas lottery schemes.

The central bank has also asked the people not to be swayed by copies of certificates/deposit schemes, purported to have been issued by the RBI, which some operators produce to substantiate their claims.