What are the provisions in respect of possession and retention of foreign currency under FEMA?

There is no restriction on possession of foreign coins by any person. Any person resident in India is permitted to retain in aggregate foreign currency not exceeding US$ 2000 or its equivalent in the form of currency notes/bank notes or travellers cheques acquired by him from approved sources.

What are the provisions in respect of possession and retention of foreign currency?

Following are the limits for possession or retention of foreign currency or foreign coins, namely :- • Possession without limit of foreign currency and coins by an authorised person within the scope of his authority ; • possession without limit of foreign coins by any person; • retention by a person resident in India …

What are the main provisions of FEMA?

The major provisions of FEMA, 1999 relate to following matters :

  • Dealing in foreign exchange, etc.
  • Holding of foreign exchange, etc.
  • Current account transactions.
  • Capital account transactions.
  • Export of goods and services.
  • Realization and repatriation of foreign exchange.
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What are the provisions of Foreign Exchange Management Act 2000?

Residents of India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it was inherited by him/her from someone living outside India.

How is foreign exchange and foreign currency defined under FEMA?

o the taking out of India to a place outside India any goods, o provision of services from India to any person outside India; • “foreign currency” means any currency other than Indian currency; • “foreign exchange” means foreign currency and includes,- o deposits, credits and balances payable in any foreign currency.

Who is Authorised under FEMA 1999?

Section 2(c) of the Foreign Exchange Management Act or FEMA states that ‘authorized person’ means an authorized dealer, money changer, off-shore banking unit, or any other person authorized under section 10 (1) to deal in foreign exchange and foreign securities.

Who is included in the term person under FEMA?

FEMA makes clear distinction between resident and non-resident. ‘Person’ includes an individual, HUF, company, firm, an association of persons and any agency, office or branch owned or controlled by such person. – section 2(u) of FEMA.

What are the main provisions under FEMA Act 10 provisions *?

As per Section 10 of FEMA, RBI have controlling role in its management however RBI cannot directly handle foreign exchange transaction and must authorize a person to deal with it as per directions set by RBI. FEMA also have provisions of various enforcement, penalties, adjudication and appeals in this area.

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What are the main objectives of Foreign Exchange Management Act?

The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.

What do you mean by foreign exchange management?

Foreign exchange management is the process of limiting a company’s exposure to foreign currency fluctuations. In most cases, this is done by companies that engage in foreign trade.

What is property under Foreign Exchange Management Act 1999?

1.1 The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by persons resident outside India.

Which Act governs the foreign exchange management in India?

The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the Foreign Exchange Management Act. FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).

How does foreign exchange regulation act work critically analyze the statement?

FERA – the four-letter acronym for Foreign Exchange Regulation Act is a legislation that came into existence in 1973 with the purpose to regulate certain dealings in foreign exchange, impose restrictions on certain kinds of payments and to monitor the transactions impinging the foreign exchange and the import and …

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What is supply of foreign exchange?

1. Exports of Goods and Services: Supply of foreign exchange comes through exports of goods and services. 2. … The amount, which foreigners invest in the home country, increases the supply of foreign exchange.

Why is Foreign Exchange Management Act important in transaction?

In India, the Foreign Exchange Management Act (FEMA) governs foreign exchange transactions and remittance payments, and the Reserve Bank overlooks the management of the foreign market. FEMA provides a framework for the smooth functioning of border trades and developing the Indian foreign exchange market.