The Foreign Exchange Management Act, 1999

The Foreign Exchange Management Act, 1999 is an Act of the Indian Parliament that consolidates and amends the law relating to foreign exchange with the objective of facilitating external trade and payments, promoting the orderly development and maintenance of foreign exchange market in India, and regulating the movement of capital in and out of the country. The act lays down rules and regulations for all foreign exchange transactions, including currency transactions, remittances, exports, imports, and investments. The act also empowers the Reserve Bank of India to regulate foreign exchange transactions and to impose penalties for non-compliance.