Question

Define the role of the RBI in enforcing FEMA?

Answer 1

Foreign Exchange Management Act (“FEMA”) envisages that Reserve Bank of India (“RBI”) will have a key role in management of foreign exchange. The main functions of RBI under FEMAare as follows: ... b) RBI cannot impose any restrictions on current account transactions.

Answer 2

Hey mate here is your answer

The Foreign Exchange Management Act (FEMA) was passed by the Parliament as a replacement for the earlier Foreign Exchange Regulation Act. Under this act, the RBI has to give permission for capital account transactions. Without permission from the RBI, no person can.

Hope this answer will help you!!