THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999
ACT NO. 42 OF 1999
[29th December, 1999.]
An Act to consolidate and amend the law relating to foreign exchange with the objective of
facilitating external trade and payments and for promoting the orderly development and
maintenance of foreign exchange market in India.
BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent, application and commencement.—(1) This Act may be called the Foreign
Exchange Management Act, 1999.
(2) It extends to the whole of India.
(3) It shall also apply to all branches, offices and agencies outside India owned or controlled by a
person resident in India and also to any contravention thereunder committed outside India by any person
to whom this Act applies.
(4) It shall come into force on such date1 as the Central Government may, by notification in the
Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in
any such provision to the commencement of this Act shall be construed as a reference to the coming into
force of that provision.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “Adjudicating Authority” means an officer authorised under sub-section (1) of section 16;
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[(b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 18;]
(c) “authorised person” means an authorised dealer, money changer, off-shore banking unit or
any other person for the time being authorised under sub-section (1) of section 10 to deal in foreign
exchange or foreign securities;
[(cc) “Authorised Officer” means an officer of the Directorate of Enforcement authorised by the
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Central Government under section 37A;]
(d) “Bench” means a Bench of the Appellate Tribunal;
(e) “capital account transaction” means a transaction which alters the assets or liabilities, including
contingent liabilities, outside India of persons resident in India or assets or liabilities in India of
persons resident outside India, and includes transactions referred to in sub-section (3) of section 6;
(f) “Chairperson” means the Chairperson of the Appellate Tribunal;
(g) “chartered accountant” shall have the meaning assigned to it in clause (b) of sub-section (1) of
section 2 of the Chartered Accountants Act, 1949 (38 of 1949);
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[(gg) “Competent Authority” means the Authority appointed by the Central Government under
sub-section (2) of section 37A;]
(h) “currency” includes all currency notes, postal notes, postal orders, money orders, cheques,
drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such
other similar instruments, as may be notified by the Reserve Bank;
1. 1st June, 2000, vide notification No. G.S.R. 371(E), dated 1st May, 2000, see Gazette of India, Extraordinary, Part II,
sec. 3(i).
2. Subs. by Act 7 of 2017, s. 165, for clause (b) (w.e.f. 26-5-2017).
3. Ins. by Act 20 of 2015, s. 138 (w.e.f. 9-9-2015).