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The Foreign Exchange Management Act 1999 (FEMA) is enforced by:
ADirectorate of Enforcement (a separate authority)
BReserve Bank of India alone
CIncome Tax Department
DSecurities and Exchange Board of India
Answer & Solution
Correct answer: A. Directorate of Enforcement (a separate authority)
1. Section 36 of FEMA establishes the Directorate of Enforcement (ED) as the enforcement agency.
2. RBI exercises overall control of foreign exchange transactions; ED enforces contraventions.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_