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Question

Which regulatory body in India is responsible for enforcing Foreign Exchange Management Act (FEMA)?
  • Reserve Bank of India (RBI)
  • Ministry of Finance
  • Securities Appellate Tribunal (SAT)
  • Securities and Exchange Board of India (SEBI)
Answer- A
The Foreign Exchange Management Act (FEMA) is enforced in India by the Reserve Bank of India (RBI). The Reserve Bank of India (RBI) is India's central bank, charged with maintaining orderly foreign exchange transactions and keeping checks on capital flows through the enforcement of FEMA laws and the management of the country's foreign exchange reserves.