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    Question

    Which of the following actions is prohibited without the

    necessary authorization under the provisions of the FEMA?
    A Making payments to persons resident outside India in any manner Correct Answer Incorrect Answer
    B Receiving payments from persons resident outside India through unauthorized channels Correct Answer Incorrect Answer
    C Entering into financial transactions in India associated with the acquisition or transfer of assets outside India without proper authorization Correct Answer Incorrect Answer
    D All a b & c Correct Answer Incorrect Answer
    E Both a & c Correct Answer Incorrect Answer

    Solution

    Explanation:  Section 3 Dealing in foreign exchange, etc.—Save as otherwise provided in this Act, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall— (a) deal in or transfer any foreign exchange or foreign security to any person not being an authorised person; (b) make any payment to or for the credit of any person resident outside India in any manner; (c) receive otherwise through an authorised person, any payment by order or on behalf of any person resident outside India in any manner; (d) enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person.

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