Module: | Transactions, Facilities and Authorized Persons
Q10: An individual wishes to legally purchase US Dollars, for a holiday abroad. Under FEMA, from whom must they purchase this currency?
✅ Correct Answer: C
Section 3 of FEMA prohibits dealing in or transferring foreign exchange to anyone other than an Authorized Person.
An Authorized Person is an entity (like a bank or money changer) specifically authorized by the Reserve Bank of India to deal in foreign exchange.
Buying from unauthorized sources (black market or private individuals) is illegal.
An Authorized Person is an entity (like a bank or money changer) specifically authorized by the Reserve Bank of India to deal in foreign exchange.
Buying from unauthorized sources (black market or private individuals) is illegal.