ClearMains
The clarification is expected to ease concerns among small digital service providers and individuals receiving or making legitimate cross-border payments for personal or small-scale professional purposes.
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Prelims Practice MCQs
Consider the following statements regarding FEMA Reporting Requirement: 1. The RBI has clarified that individuals will be exempt from the new FEMA reporting requirement. 2. The new FEMA reporting requirement will only apply to transactions exceeding ₹50 lakh. 3. The RBI is responsible for implementing FEMA regulations. How many of the above statements are correct?
Statement 1 is correct because the RBI has clarified that individuals will be spared from the new FEMA reporting requirement (Facts 1, 6, 8). Statement 2 is incorrect because the new FEMA reporting requirement will only apply to transactions exceeding ₹20 lakh (Facts 9, 10). Statement 3 is correct because the RBI is responsible for implementing FEMA regulations (Fact 3).
Consider the following two statements: Statement-I: The RBI has clarified that the new FEMA reporting requirement will only apply to businesses and large-scale professional transactions. Statement-II: This is because the RBI wants to reduce the regulatory burden on small digital service providers and individuals. Which one of the following is correct in respect of the above statements?
Statement 1 is correct because the RBI has clarified that the new FEMA reporting requirement will only apply to businesses and large-scale professional transactions (Fact 7). Statement 2 is correct because the RBI's clarification is expected to ease concerns among small digital service providers and individuals (Fact 5). Statement 2 explains why Statement 1 is true, as the RBI's intention to reduce the regulatory burden on small digital service providers and individuals is the causal reason for the clarification.