MEANING AND LEGAL BASE, AUTHORISED PERSONS IN FOREIGN EXCHANGE, ACTIVITIES PERMITTED TO AD CATEGORY II, GENERAL RESTRICTIONS, SALE OF FOREIGN EXCHANGE FOR TRAVEL, FOREIGN CURRENCY NOTES COINS LIMIT, DOCUMENTATION,
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What is the primary legislation governing foreign exchange transactions in India?
The Foreign Exchange Management Act, 1999 (FEMA) is the primary legislation governing all foreign exchange transactions in India, replacing the earlier FERA, 1973.
What does FEMA stand for and in which year was it enacted?
Foreign Exchange Management Act, enacted in 1999.
Who is empowered to issue directions to Authorised Persons under FEMA, 1999?
The Reserve Bank of India (RBI) is empowered under Section 11 of FEMA, 1999 to issue directions to Authorised Persons regarding foreign exchange transactions.
Which authority grants licences to Authorised Dealers in foreign exchange in India?
Reserve Bank of India grants licences to Authorised Dealers.
What does the term 'Authorised Person' mean under FEMA, 1999?
An Authorised Person under Section 2(c) of FEMA means any person authorised by the RBI under Section 10(1) to deal in foreign exchange or foreign securities, including Authorised Dealers, money changers, and off-shore banking units.
What is the difference between AD Category I and AD Category II in terms of permissions?
AD I has broader permissions; AD II has limited, specified activities only.
What are the four categories of Authorised Persons recognised under FEMA?
The four categories are Authorised Dealer Category I (AD Cat I), Authorised Dealer Category II (AD Cat II), Authorised Dealer Category III (AD Cat III), and Full Fledged Money Changers (FFMCs).
Can AD Category II entities issue traveller's cheques to customers?
No, AD Category II cannot issue traveller's cheques.
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