FEMA · 3
Dealing in foreign exchange
No person shall deal in or transfer foreign exchange to any person other than an authorised person, or make payment to or for the credit of a person resident outside India, except as permitted.
Library
Civil & Commercial
Foreign Exchange Management Act, 1999
1999 · Ministry of Finance · 49 sections
Civil regulatory regime for foreign exchange, cross-border investment and external trade, administered by the RBI, replacing the criminal FERA regime.
Most-invoked sections
FEMA · 4
Holding of foreign exchange
No person resident in India shall acquire, hold, own, possess or transfer foreign exchange, foreign security or immovable property outside India except as provided.
FEMA · 6
Capital account transactions
The RBI may, in consultation with the Central Government, specify permissible capital account transactions and limits (FEMA (Non-debt Instruments) Rules, 2019).
FEMA · 13
Penalties
Contravention attracts a penalty of up to three times the sum involved where quantifiable, or up to ₹2 lakh, plus ₹5,000 per day of continuing contravention.
FEMA · 15
Power to compound contravention
Contraventions (other than under s. 3(a)) may be compounded by the RBI or Directorate of Enforcement within 180 days of application.
The text shown is a working summary used inside Nyaya for grounding and UI preview. For verbatim reproduction, refer to the bare Act published on indiacode.nic.in.