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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management

Kiran Exports Ltd, resident in India, has export proceeds in foreign exchange that have become due from a buyer in Germany. Under the Act, what must Kiran Exports do?

Kiran Exports must take all reasonable steps to realise and repatriate the foreign exchange to India within the period and in the manner specified by the Reserve Bank, as required by Section 8, save as otherwise provided in the Act.

  1. AKeep the amount abroad indefinitely, since export proceeds are exempt
  2. BTake all reasonable steps to realise and repatriate the foreign exchange to India within the period and in the manner specified by the Reserve BankCorrect
  3. CRepatriate the amount only if the Central Government issues a specific order for that transaction
  4. DRepatriate the amount within a period fixed by the Competent Authority

Explanation

Section 8 requires a resident person to whom foreign exchange is due or has accrued to take all reasonable steps to realise and repatriate it within the period and manner specified by the Reserve Bank. The Central Government and Competent Authority are not the specifying bodies here.

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