Skip to content

CS Executive · Economic, Commercial and Intellectual Property Laws · Overseas Direct Investment

The Reserve Bank of India directs an authorised dealer bank to furnish certain information about its overseas investment remittances so that compliance with FEMA can be checked. Which provision of the Act empowers the Reserve Bank to give such a direction to an authorised person?

Section 11(2) of FEMA empowers the Reserve Bank to direct any authorised person to furnish information in the manner it considers fit, so that compliance with the Act and its rules, regulations, directions and orders can be ensured. The other provisions deal with exporters, penalties or inspections.

  1. ASection 11(2), which lets the Reserve Bank direct an authorised person to furnish information in the manner it deems fitCorrect
  2. BSection 7(3), which requires exporters of services to furnish declarations
  3. CSection 13(1A), which deals with acquisition of foreign assets above a threshold
  4. DSection 12(2), which requires production of books by a person other than an authorised person

Explanation

Section 11(2) allows the Reserve Bank, to ensure compliance with the Act and its rules, regulations, directions or orders, to direct any authorised person to furnish information in such manner as it deems fit. Section 7(3) concerns exporters of services, and Section 13(1A) concerns penalties for acquiring foreign assets above a threshold. Section 12(2) is about producing books during an inspection, not a direction to furnish information.

Did you get it right without looking?

One question tells you little. A timed set on Overseas Direct Investment shows your real accuracy, how long you take and where you lose marks.

Practise Overseas Direct InvestmentFree diagnostic mock

More Overseas Direct Investment questions