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

The IFSCA fines a GIFT City entity for a contravention. Which statement about collecting the penalty is correct under the Act?

The penalty is collected in the foreign currency equivalent, computed at the RBI-notified exchange rate on the date of the order imposing it. All sums realised are credited to the Consolidated Fund of India in Indian rupees, not retained by the Authority. This follows section 13(5) and (6).

  1. AIt is collected in rupees and kept by the Authority
  2. BIt is collected in the foreign currency equivalent, using the RBI rate on the date of the penalty order, and sums realised are credited in rupees to the Consolidated Fund of IndiaCorrect
  3. CIt is collected in dollars at the rate on the date of the contravention and credited to the Authority's fund
  4. DIt is waived for foreign currency accounts

Explanation

Section 13(5) says penalties are realised in the foreign currency equivalent, at the RBI-notified rate on the date of the order. Section 13(6) says sums realised are credited to the Consolidated Fund of India in rupees.

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