Regulation and Management of Foreign Exchange in India
The regulation and management of foreign exchange in India are governed by the Foreign Exchange Management Act (FEMA), 1999. This law empowers the Reserve Bank of India (RBI) and the Central Government to oversee foreign exchange transactions, promote international trade, and maintain stability in the market. FEMA: Key Provisions 1. Authorization & Regulation * Only…
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Regulatory Framework of Payment and Settlement Systems in India: Overview of the PSS Act, 2007
The Payment and Settlement Systems Act, 2007 (PSS Act) governs the regulation and supervision of payment systems in India and designates the Reserve Bank of India (RBI) as the regulatory authority for this purpose. The Act empowers the RBI to establish a committee, namely the Board for Regulation and Supervision of Payment and Settlement Systems…
Read article Meaning of Certain Important Terms Used in FEMA
The Foreign Exchange Management Act (FEMA), 1999 is a cornerstone legislation in India that governs dealings in foreign exchange. For bankers, finance professionals, and even corporates engaging in cross-border transactions, an understanding of FEMA’s key terminology is essential. The Act uses some specific terms that may sound technical, but their correct interpretation is crucial to…
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What is Payment and Settlement System?
The payment and settlement system in India is governed by the Payment and Settlement Systems (PSS) Act, 2007. According to definition of PSS Act 2007, Payment System means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them. This includes the…
Read article Regulation of Payment Systems in India: Understanding the PSS Act, 2007
The smooth functioning of payment systems is vital for financial stability and trust in India’s banking ecosystem. To strengthen this framework, the Payment and Settlement Systems Act, 2007 (PSS Act, 2007) was enacted and came into force on 12th August 2008. This landmark legislation provides a legal foundation for regulating and supervising payment systems in…
Foreign Exchange Management Act (FEMA), 1999 – A Simplified Guide
The Foreign Exchange Management Act, 1999 (FEMA) is India’s primary legislation governing foreign exchange. It was introduced to replace the restrictive **Foreign Exchange Regulation Act (FERA)**, with the goal of creating a more open, transparent, and investor-friendly environment for international trade and payments. FEMA empowers the Reserve Bank of India (RBI) to regulate foreign exchange…
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