Module: General Practice
Q84: Regarding Section 11 (RBI’s Power to Issue Directions), which of the following statements is legally valid?
✅ Correct Answer: B
Option B is valid.
Concept Definition: Section 11 gives RBI the operational teeth to enforce the Act.
Structural Breakdown: Scope: RBI can direct any Authorized Person (ADs, Money Changers, Offshore Banking Units). Purpose: Directions can cover payment procedures, reporting formats, or restrictions on acting for non-residents.
Penalty (Section 11(3)): If an AP contravenes a direction, the RBI itself (not just Govt) can impose a penalty (up to ₹10,000 and continuing daily fines). This is distinct from the heavy "Contravention" penalties under Section 13.
Concept Definition: Section 11 gives RBI the operational teeth to enforce the Act.
Structural Breakdown: Scope: RBI can direct any Authorized Person (ADs, Money Changers, Offshore Banking Units). Purpose: Directions can cover payment procedures, reporting formats, or restrictions on acting for non-residents.
Penalty (Section 11(3)): If an AP contravenes a direction, the RBI itself (not just Govt) can impose a penalty (up to ₹10,000 and continuing daily fines). This is distinct from the heavy "Contravention" penalties under Section 13.