Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Penalties, Adjudication and Sections

Q17: Which of the following pairs, correctly matches the Section of the Foreign Exchange Management Act (FEMA), with its specific subject matter?

1. Section 3: Prohibition on dealing in foreign exchange, except through an Authorized Person.
2. Section 6: Regulation of Capital Account Transactions.
3. Section 7: Export of Goods and Services (Realization and Repatriation).
4. Section 10: Regulation of Domestic Rupee Transfers.
A
1 and 4 only
B
2 and 3 only
C
1, 2, and 3 only
D
All of the above
✅ Correct Answer: C
Section 3 prohibits unauthorized dealings in foreign exchange.
Section 6 empowers the RBI to regulate Capital Account transactions (those altering assets/liabilities abroad). Section 7 imposes obligations on exporters to furnish declarations and realize export proceeds.
Section 10 deals with the duties and powers of Authorized Persons, not domestic rupee transfers (which are outside FEMA).