Module: | Penalties, Adjudication and Sections
Q18: A person resident in India, wishes to open a savings bank account in New York, denominated in US Dollars. Under FEMA, is this permitted?
✅ Correct Answer: C
Residents in India generally cannot open foreign currency accounts abroad at their own will.
They must fall under a specific general permission (such as the Liberalised Remittance Scheme or returning from employment abroad) or obtain specific approval from the RBI.
Opening a foreign account without such permission is a contravention.
They must fall under a specific general permission (such as the Liberalised Remittance Scheme or returning from employment abroad) or obtain specific approval from the RBI.
Opening a foreign account without such permission is a contravention.