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Section 47 Foreign Exchange Mgt. Act 1999: Power to make regulations

Section 47 (Power to make regulations) under Chapter VII (Miscellaneous) of the Foreign Exchange Management Act 1999 (FEMA)

❝(1) The Reserve Bank may, by notification, make regulations to carry out the provisions of this Act and the rules made thereunder.

(2) Without prejudice to the generality of the foregoing power, such regulations may provide for,—
 (a) the permissible classes of capital account transactions, the limits of admissibility of foreign exchange for such transactions, and the prohibition, restriction or regulation of certain capital account transactions under section 6;
 (b) the manner and the form in which the declaration is to be furnished under clause (a) of sub-section (1) of section 7;
 (c) the period within which and the manner of repatriation of foreign exchange under section 8;
 (d) the limit up to which any person may possess foreign currency or foreign coins under clause (a) of section 9;
 (e) the class of persons and the limit up to which foreign currency account may be held or operated under clause (b) of section 9;
 (f) the limit up to which foreign exchange acquired may be exempted under clause (d) of section 9;
 (g) the limit up to which foreign exchange acquired may be retained under clause (e) of section 9;
 (ga) export, import or holding of currency or currency notes;
 (h) any other matter which is required to be, or may be, specified.

(3) All regulations made by the Reserve Bank before the date on which the provisions of this section are notified under section 6 and section 47 of this Act on capital account transactions, the regulation making power in respect of which now vests with the Central Government, shall continue to be valid, until amended or rescinded by the Central Government.❞



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Notes:

Section 47 of the Act was amended by the Finance Act, 2015 (Act No. 20 of 2015); (effective date to be notified) :-

(A) in sub-section (2),—

 (i) for clause (a), the following clause shall be substituted, namely:––
 “(a) the permissible classes of capital account transactions involving debt instruments determined under sub-section (7) of section 6, the limits of admissibility of foreign exchange for such transactions, and the prohibition, restriction or regulation of such capital account transactions under section 6;”;

 (ii) after clause (g), the following clause shall be inserted, namely:––
 “(ga) export, import or holding of currency or currency notes;”;

(B) after sub-section (2), the following sub-section shall be inserted, namely:—
 “(3) All regulations made by the Reserve Bank before the date on which the provisions of this section are notified under section 6 and section 47 of this Act on capital account transactions, the regulation making power in respect of which now vests with the Central Government, shall continue to be valid, until amended or rescinded by the Central Government.”.

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Extra Notes:

The Foreign Exchange Management Act, 1999 was amended by:
- the Finance Act, 2015 (Act No. 20 of 2015);
- the Finance Act, 2016 (Act No. 28 of 2016);
- the Finance Act, 2017 (Act No. 07 of 2017).

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