What are the functions of RBI under FEMA?

  • Blog|FEMA & Banking|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 25 June, 2021

Recent Posts

Blog, News, Insolvency and Bankruptcy Code

Interim Moratorium Barred Continuation of Proceedings u/s 138 of NI Act Against Petitioner Due to IBC’s Overriding Effect | HC

Blog, News, FEMA & Banking

Borrower’s Right to Redeem Secured Asset Ends on Publication of Notice u/s 9(1) of SI Rules, Not After Sale Completion | SC

Latest from Taxmann

 Foreign Exchange Management Act (“FEMA”) envisages that Reserve Bank of India (“RBI”) will have a key role in management of foreign exchange. The main functions of RBI under FEMA are as follows:
 
a) Controlling dealings in foreign exchange by giving general or special permission for dealing in foreign exchange, excluding those cases where specific provisions have been made in Act, Rules or Regulations – Section 3.
 
b) RBI cannot impose any restrictions on current account transactions. These can be imposed only by Central Government in consultation with RBI – Section 5. However, in certain cases, prior approval of RBI is required for current account transactions as provided in Foreign Exchange Management (Current Account Transactions) Rules, 2000.
 
c) Specifying conditions for payment in respect of capital account transaction – Section 6(2).
 
d) Regulate/prohibit/restrict the following, by issuing Regulations:
 
  • Transfer or issue of foreign security to resident and Indian security to non-resident;
  • Borrowing and lending in foreign exchange or to a foreign person; 
  • Export/import of currency or currency notes;
  • Transfer of immovable property outside India;
  • Giving guarantee or surety where foreign exchange transaction is involved – Section 6(3)
 
e) Specify (by regulation) period and manner in which foreign exchange due from export of goods and services should be received – Section 8.
 
f) To grant exemption from realisation and repatriation in cases specified under Section 9.
 
g) Granting authorisation to ‘Authorised Person’ to deal in foreign exchange, to give directions to them and to inspect the authorised person – Sections 10, 11 & 12.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Comments are closed.

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied