Module: | Introduction, Scope and Residential Status
Q5: Which regulatory body is primarily responsible, for the administration and practical implementation of the Foreign Exchange Management Act (FEMA), including issuing Master Directions to banks?
✅ Correct Answer: A
The Reserve Bank of India (RBI) is the central authority for administering FEMA.
While the Central Government formulates the rules, the RBI issues regulations, Master Directions, and circulars that Authorized Dealer banks must follow.
It manages the day-to-day operation of the foreign exchange market.
While the Central Government formulates the rules, the RBI issues regulations, Master Directions, and circulars that Authorized Dealer banks must follow.
It manages the day-to-day operation of the foreign exchange market.