FEMA 2000 was enacted to replace which earlier act?

FEMA 2000 replaced the Foreign Exchange Regulation Act (FERA) of 1973.

The primary objective of FEMA is to ___ the restrictions on foreign exchange transactions.

Reduce

Under FEMA, offences related to foreign exchange transactions are treated as ___ offences.

Civil

What is the minimum duration of residence in India for a person to be considered a 'Resident' under FEMA?

182 days

True or False: Under FEMA, all transactions with Nepal and Bhutan must be conducted in foreign currency.

False. Transactions with Nepal and Bhutan can be conducted in Indian Rupees.

Section 5 of FEMA states that there are ___ restrictions on current account transactions.

No

According to FEMA, who is authorized to deal in foreign exchange?

Only authorized persons designated by the RBI.

What is the penalty for contravening FEMA regulations?

The penalty can be three times the sum involved in the contravention, plus Rs. 5000 per day for continued contravention.

FEMA differentiates between which two types of transactions?

Current account transactions and capital account transactions.

Fill in the blank: The RBI can authorize any entity to deal in foreign exchange, but they must adhere to ___ guidelines.

RBI

What is the Liberalised Remittance Scheme limit for individuals under FEMA?

USD 2,50,000 per financial year.

True or False: Under FEMA, remittance for cultural tours abroad requires approval from the Central Government if exceeding a certain limit.

True

What responsibility does an exporter have under Section 7 of FEMA?

The exporter must declare the true and correct details of goods being sold outside India and report to the RBI.

Capital account transactions are defined as those that alter a person's ___ and ___ across national boundaries.

Assets and liabilities