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

The IFSCA imposes a penalty on a GIFT IFSC unit under powers taken over from an appropriate regulator. Which statement matches the IFSCA Act, 2019 on collection and credit of the penalty?

The penalty is collected in the foreign currency equivalent, using the Reserve Bank of India rate on the date of the penalty order. Sums realised by way of penalties or fines are then credited to the Consolidated Fund of India in Indian rupees.

  1. AIt is collected in rupees and credited to the Authority's own fund
  2. BIt is collected in the foreign currency equivalent, at the RBI-notified rate on the date of the order, and sums realised are credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CIt is collected in the foreign currency equivalent, at the RBI-notified rate on the date of recovery, and kept by the Authority
  4. DIt is collected in the foreign currency equivalent and credited to the Consolidated Fund of India in that foreign currency

Explanation

Penalties, fines, fees and settlement amounts are collected in the foreign currency equivalent of the amount imposed, using the rate notified by the Reserve Bank of India on the date of the order imposing it. Sums realised as penalties or fines are credited to the Consolidated Fund of India in Indian rupees. The other options misstate the date, the recipient or the currency of credit.

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