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

Section 1 of FEMA, 1999 empowers the Central Government to bring the Act into force. Which statement correctly reflects this provision?

The Central Government appoints the commencement date by notification in the Official Gazette, and it may appoint different dates for different provisions. FEMA was notified to come into force on 1 June 2000. The Reserve Bank has no role in fixing the date.

  1. AThe Act came into force automatically on receiving assent, with no notification needed
  2. BThe Act comes into force on a date notified in the Official Gazette, and different dates may be appointed for different provisionsCorrect
  3. CThe Act can come into force only on one single date for all provisions
  4. DThe Reserve Bank, not the Central Government, appoints the commencement date

Explanation

Section 1(4) says the Act comes into force on the date the Central Government appoints by Official Gazette notification, and different dates may be fixed for different provisions. The Act was brought into force on 1 June 2000. Options naming the RBI or a single date contradict the proviso.

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