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    Question

    Under which act are hawala transactions prohibited in

    India?
    A The Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    B Fiscal Responsibility and Budget Management Act, 2003 Correct Answer Incorrect Answer
    C Prevention of Money Laundering Act, 2002 Correct Answer Incorrect Answer
    D Foreign Exchange Regulation Act, 1973 Correct Answer Incorrect Answer
    E Foreign Exchange Management Act, 1999 Correct Answer Incorrect Answer

    Solution

    Hawala, as it is referred to in the Middle East and South Asia, was commonly used before the advent of modern western banking services. It is essentially an alternative remittance system that facilitates a transfer of money across international borders.

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