Question

    What did the Reserve Bank of India (RBI) allow Authorized Dealers (ADs) to do under the recent FEMA regulations?

    A Open interestfree accounts for nonresidents Correct Answer Incorrect Answer
    B Open interestbearing accounts for nonresidents Correct Answer Incorrect Answer
    C Provide foreign currency loans to residents Correct Answer Incorrect Answer
    D Trade in international stocks Correct Answer Incorrect Answer
    E Issue digital wallets to residents Correct Answer Incorrect Answer

    Solution

    Authorized Dealers (ADs) in India can now allow persons resident outside India to open, hold, and maintain interestbearing accounts in Indian Rupees and/or foreign currency for collecting margin in India for permitted derivative contracts.

    Practice Next

    Relevant for Exams: