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

Which of the following is NOT among the matters on which the Reserve Bank may make regulations under Section 47(2) of FEMA, 1999, as per the text given?

Prescribing imprisonment for a contravention is not listed. Section 47(2) lets the Reserve Bank make regulations on matters such as limits for possessing foreign currency, foreign currency accounts, and export, import or holding of currency notes, but not on imprisonment.

  1. AThe limit up to which any person may possess foreign currency or foreign coins under Section 9(a)
  2. BThe class of persons and limit up to which a foreign currency account may be held or operated under Section 9(b)
  3. CExport, import or holding of currency or currency notes
  4. DThe punishment of imprisonment for a contravention of the ActCorrect

Explanation

Section 47(2) lists the possession limits for foreign currency (d), foreign currency accounts (e), and export, import or holding of currency or currency notes (ga). Nothing in the list gives the RBI power to prescribe imprisonment; penalties are not a matter for RBI regulations in this section.

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