 "Don't fall prey to vows of multi-level marketing firms: RBI")
Cautioning investors against multi-level marketing (MLM) firms promising easy and quick money, the Reserve Bank of India (RBI) on Thursday asked public not to be tempted by such offers.
"MLM/chain marketing/pyramid structure schemes promise easy or quick money upon enrolment of members," it said in a statement.
There have been a spurt of such schemes in the recent past while various regulators are taking actions such entities.
"Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most," it added.
"MLM/chain marketing/pyramid structure schemes promise easy or quick money upon enrolment of members," it said in a statement.
There have been a spurt of such schemes in the recent past while various regulators are taking actions such entities.
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Advising caution, RBI said investors should not fall prey to these kind of unscrupulous entities as the pyramid structure mandates all members to enroll more members.
"Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most," it added.