Module: | Transactions, Facilities and Authorized Persons
Q8: Regarding the regulation of foreign exchange transactions, which of the following pairs correctly identifies the primary regulatory authority?
✅ Correct Answer: B
FEMA establishes a distinct division of regulatory power.
The Reserve Bank of India (RBI) primarily regulates Capital Account transactions (in consultation with the Government). The Central Government primarily frames the rules for Current Account transactions (in consultation with the RBI).
The Reserve Bank of India (RBI) primarily regulates Capital Account transactions (in consultation with the Government). The Central Government primarily frames the rules for Current Account transactions (in consultation with the RBI).