Question

Evaluate the following statements about India's foreign exchange regulatory framework: I. The Foreign Exchange Management Act (FEM

  • A , 1999 classifies transactions into current account transactions (largely liberalised) and capital account transactions (regulated by RBI and government). II. The Reserve Bank of India directly sets and publishes the official USD/INR exchange rate daily, which all banks and money changers are legally required to use for all transactions. Which of the above is/are correct?
A Only II
B Only I
C Both I and II
D Neither I nor II
E Both are partially correct
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