Which of the following is prohibited under the Foreign

Q: Answer-Which of the following is prohibited under the Foreign Exchange Management Act (FEMA), 1999?

Explanation FEMA regulates foreign exchange in India and restricts dealings in foreign exchange without the prior approval of the RBI. The Act provides legal guidelines for currency transactions and financial activities involving foreign exchange to ensure economic stability.

Exchange Management Act (FEMA), 1999?

A Holding foreign exchange accounts Correct Answer Incorrect Answer

B Dealing in foreign exchange without the RBI's approval Correct Answer Incorrect Answer

C Repatriation of foreign earnings to India Correct Answer Incorrect Answer

D Conversion of Indian Rupees into foreign currency Correct Answer Incorrect Answer

Solution

•Explanation: •FEMA regulates foreign exchange in India and restricts dealings in foreign exchange without the prior approval of the RBI. •The Act provides legal guidelines for currency transactions and financial activities involving foreign exchange to ensure economic stability.

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