Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
What is the role of EDPMS (Export Data Processing and Monitoring System) in the FEMA compliance architecture?
Direct Answer
It is an IT-based system for monitoring export of goods and software and facilitating reconciliation of export proceeds with Customs data.
Which expert committee appointed by the Reserve Bank of India laid down the roadmap and preconditions (fiscal deficit, inflation, NPA levels) for moving towards Full Capital Account Convertibility (FCAC)?
What is an Authorized Person (AP)?
Direct Answer
An "Authorized Person" (AP) is any entity authorized by the RBI to deal in forex.
How is NOF calculated?
Direct Answer
NOF is calculated as (Paid-up Equity Capital + Free Reserves + Credit Balance in P&L) minus (Accumulated Losses + Deferred Revenue Expenditure + Intangible Assets).
To renew an existing FFMC or AD Category-II license, the application for renewal must be submitted to the Reserve Bank of India at least:
A person resident in India who has returned from a trip abroad must surrender unspent foreign currency notes to an Authorized Person within what time frame?
Identify the INCORRECT statement regarding the issuance of Foreign Currency (Forex) Prepaid Cards by Authorized Dealers:
Direct Answer
Unspent balances on Forex cards can be refunded to the user in cash (INR) without any limit.
What is a Capital Account Transaction?
Following the amendments by the Finance Act, 2015 (effective October 2019), who holds the power to frame rules regarding "Non-Debt Instruments" (e.g., Equity, FDI)?
Under Section 6(3) of FEMA 1999 (as amended), the Reserve Bank of India may prohibit, restrict, or regulate all of the following transactions EXCEPT:
Direct Answer
Transfer or issue of equity shares of an Indian company to a person resident outside India (FDI).
Which section of FEMA 1999 specifically empowers the Reserve Bank of India to authorize persons (Authorized Dealers, Money Changers) to deal in foreign exchange?
Consider the following duties of an Authorized Person (AP) under Section 10 of FEMA. Which statement is CORRECT?
Direct Answer
An AP must satisfy itself that the transaction is compliant with the Act and must refuse to undertake the transaction if the client refuses to provide a declaration.
Under Section 13 of FEMA 1999,
what is the maximum quantitative penalty that can be imposed if the amount involved in the contravention is quantifiable?
Which authority is primarily responsible for investigating contraventions under FEMA (Section 37) and conducting adjudication proceedings?
Under the Compounding of Contraventions Rules, the RBI can compound all of the following types of contraventions EXCEPT:
Regarding the Appeal Mechanism under FEMA (Section 17 & 19), which statement is TRUE?
Direct Answer
An appeal against the order of the Adjudicating Authority lies to the Special Director (Appeals) or the Appellate Tribunal, depending on the designation of the officer.
According to the Foreign Exchange Management (Overseas Investment) Rules, 2022, the total "Financial Commitment" made by an Indian Entity in all foreign entities shall not exceed:
Direct Answer
400% of its Net Worth as on the date of the last audited balance sheet.