Payment & Settlement Systems Act, 2007 – The Backbone of India’s Digital Economy”
In today’s hyper-digital age, where money moves at the click of a button, we rarely pause to think about what keeps these systems running securely and efficiently. Imagine if your UPI transfer hung in limbo, or if there was no clear legal framework defining who’s responsible for settlement issues. That’s where the Payment and Settlement…
Read article FEMA Provisions on Assets Held Outside India
Under the Foreign Exchange Management Act (FEMA), 1999, special provisions apply to assets held abroad by persons resident in India. These rules regulate ownership, transfer, and investment in foreign assets, ensuring legal compliance and preventing unauthorized holdings. Key Provisions 1. Section 4 of FEMA * Prohibits residents from acquiring, holding, owning, possessing, or transferring any…
Read article Directorate of Enforcement (ED) under FEMA
The Directorate of Enforcement (ED) is the central agency responsible for investigating and enforcing violations of the Foreign Exchange Management Act (FEMA), 1999 in India. Functioning under the **Ministry of Finance**, it plays a crucial role in safeguarding the integrity of the foreign exchange market and ensuring compliance with India’s foreign exchange laws. Key Roles…
Read article 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…
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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