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

Under the FEMA, 1999, who specifies the period within which and the manner in which foreign exchange due or accrued to a person resident in India must be realised and repatriated to India?

The Reserve Bank specifies the period and manner of realisation and repatriation. A resident to whom foreign exchange is due or has accrued must take all reasonable steps to bring it to India within the period and in the manner the Reserve Bank lays down.

  1. AThe Central Government through the Finance Act
  2. BThe Reserve BankCorrect
  3. CThe Directorate of Enforcement
  4. DThe authorised person through whom the export is made

Explanation

Section 8 requires a resident to take all reasonable steps to realise and repatriate foreign exchange within such period and in such manner as the Reserve Bank specifies. Section 47(2)(c) also lists this among the matters for RBI regulations. The Central Government or authorised person has no such role under this section.

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