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CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction

Arjun, a compliance officer, reads that the Authority exercises, in an IFSC, the powers of the appropriate regulators named in the First Schedule. A bank branch in the IFSC is penalised under an Act listed in the First Schedule. Which statement matches section 13?

Penalties are collected in the foreign currency equivalent of the amount imposed, using the RBI-notified exchange rate on the date of the order, and all sums realised are credited to the Consolidated Fund of India in Indian rupees.

  1. APenalties are collected in Indian rupees only and credited to the IFSCA's own fund
  2. BPenalties are collected in the foreign currency equivalent, and sums realised are credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CPenalties are collected in US dollars at a rate fixed by the Authority
  4. DPenalties are collected in foreign currency and retained by the IFSC Development Commissioner

Explanation

Section 13(5) says penalties and fines are collected in the foreign currency equivalent, converted at the RBI-notified rate on the date of the order. Section 13(6) credits sums realised to the Consolidated Fund of India in Indian rupees. The other options misstate the currency, rate or fund.

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