Multiple choice

As per FEMA 1999, the term foreign exchange does not include which of the following?

  1. Amount payable in foreign currency

  2. DD drawn in Indian currency but payable in foreign currency

  3. DD drawn abroad but payable in Indian currency

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The legal framework for administration of exchange control in India is provided by the Foreign Exchange Management Act, 1999. Under the Act, freedom has been granted for buying and selling of foreign exchange for undertaking current account transactions. The act involves all the three options, so option 4 is the correct answer.

Keep practicing — related questions