Reserve Bank of India is empowered to regulate capital account transactions under:
ASection 5
BSection 10
CSection 7
DSection 6
Answer & Solution
Correct answer: D. Section 6
1. Section 6 of FEMA empowers the RBI to specify the classes of capital account transactions that are permissible.
2. RBI also frames the FEM (Permissible Capital Account Transactions) Regulations.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_