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CMA Final · Corporate and Economic Laws · Foreign Exchange Management Act, 1999

Section 8 of FEMA requires a person resident in India, to whom foreign exchange is due or has accrued, to take all reasonable steps to realise and repatriate it. Who specifies the period and manner of such repatriation?

The Reserve Bank specifies the period and manner of realisation and repatriation of foreign exchange. Section 8 says a resident must take all reasonable steps to repatriate within the period and in the manner specified by the Reserve Bank, and section 47 supports this through its regulation-making power.

  1. AThe Reserve BankCorrect
  2. BThe Central Government through the Ministry of Commerce
  3. CThe Securities and Exchange Board of India
  4. DThe Directorate of Enforcement

Explanation

Section 8 states that realisation and repatriation must be within such period and in such manner as may be specified by the Reserve Bank. Section 47(2)(c) likewise lets RBI regulations provide for the period and manner of repatriation. The other bodies have no such power under these provisions.

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