Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q30: Consider the following statements regarding Civil Imprisonment under FEMA:

Assertion (A)- FEMA allows for the arrest and civil imprisonment of a defaulter if they fail to pay the penalty imposed by the Adjudicating Authority within 90 days.




Reason (R)- Civil imprisonment under FEMA is a mode of punishment for the offence committed, distinct from the penalty amount.
A
Both A and R are true, and R explains A
B
Both A and R are true, but R does not explain A
C
A is true, but R is false
D
A is false, but R is true
✅ Correct Answer: C
Recovery vs.
Punishment: Assertion is True: Section 14 allows the Adjudicating Authority to issue a warrant for arrest if the penalty is not paid within 90 days of the notice.
Reason is False: Civil imprisonment in FEMA is NOT a punishment for the original contravention.
It is a mode of recovery (execution of the order). Proof: The moment the defaulter pays the arrears (penalty amount), they must be released immediately.
If it were a punishment for a crime, payment wouldn't automatically end the sentence.
The "offence" in FEMA is civil; the imprisonment is only to compel payment.