Understanding Contravention, Penalties, Adjudication and Appeals mechanism under FEMA
Under FEMA, contraventions, penalties, adjudication, and appeals are handled through a structured legal process to ensure fairness and regulatory compliance in foreign exchange dealings. Contravention Under FEMA A contravention occurs when any person, company, or entity violates the provisions, rules, regulations, or directions issued under FEMA, or acts against the conditions attached to any authorization…
Read article Key RBI Powers over Authorized Persons
The Reserve Bank of India (RBI) has extensive powers with respect to authorized persons under FEMA (Foreign Exchange Management Act, 1999), enabling it to regulate, supervise, and enforce compliance in the conduct of foreign exchange transactions. Authorization & Licensing RBI is empowered to authorize any person or entity (banks, money changers, financial institutions) to act…
Read article 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…
Read article
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…
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