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Which of the following Bank enforces the provisions of Foreign Exchange Management Act in India?
- a)Central Bank of India
- b)State Bank of India
- c)ICICI Bank
- d)The Reserve Bank of India
Correct answer is option 'D'. Can you explain this answer?
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Which of the following Bank enforces the provisions of Foreign Exchang...
Overview of Foreign Exchange Management Act (FEMA)
The Foreign Exchange Management Act (FEMA) is a crucial legislation in India that regulates foreign exchange transactions and promotes orderly development and maintenance of the foreign exchange market in the country. It was enacted in 1999, replacing the earlier Foreign Exchange Regulation Act (FERA).
Role of the Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) plays a pivotal role in enforcing the provisions of FEMA. Here’s how:
Conclusion
In summary, the Reserve Bank of India is the correct answer as it is the designated authority responsible for enforcing the provisions of the Foreign Exchange Management Act in India. Its role is vital in maintaining the integrity and stability of the foreign exchange market, ensuring compliance, and protecting the Indian economy from adverse impacts associated with foreign exchange transactions.
The Foreign Exchange Management Act (FEMA) is a crucial legislation in India that regulates foreign exchange transactions and promotes orderly development and maintenance of the foreign exchange market in the country. It was enacted in 1999, replacing the earlier Foreign Exchange Regulation Act (FERA).
Role of the Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) plays a pivotal role in enforcing the provisions of FEMA. Here’s how:
- Regulatory Authority: RBI is the primary regulatory body responsible for overseeing foreign exchange transactions in India.
- Policy Implementation: The RBI formulates policies and guidelines under FEMA to facilitate foreign exchange management and ensure compliance by individuals and entities.
- Monitoring Transactions: It monitors foreign exchange transactions to prevent illegal activities and ensure that they comply with the regulations set forth in FEMA.
- Licensing and Approvals: RBI provides necessary approvals for various foreign exchange transactions, including remittances and investments.
- Enforcement Actions: The RBI has the authority to take enforcement actions against violations of FEMA provisions. This can include penalties and legal actions against non-compliant entities.
Conclusion
In summary, the Reserve Bank of India is the correct answer as it is the designated authority responsible for enforcing the provisions of the Foreign Exchange Management Act in India. Its role is vital in maintaining the integrity and stability of the foreign exchange market, ensuring compliance, and protecting the Indian economy from adverse impacts associated with foreign exchange transactions.
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Which of the following Bank enforces the provisions of Foreign Exchang...
The Reserve Bank of India
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Which of the following Bank enforces the provisions of Foreign Exchange Management Act in India?a)Central Bank of Indiab)State Bank of Indiac)ICICI Bankd)The Reserve Bank of IndiaCorrect answer is option 'D'. Can you explain this answer?
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