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FOREIGN EXCHANGE : Foreign exchange, as defined under Foreign Exchange Regulation Act. 1973 is foreign currency and includes:
i) All deposits credit and balance payable in foreign currency
ii) Any drafts, traveller's cheques, letters of credit and bills of exchange expressed or drawn in Indian currency but payable in any foreign currency and,
iii) Any instrument payable at the option of the drawer or holder thereof or any other party thereto, either in Indian currency or foreign currency or partly in one and partly in the other.
Foreign exchange accrues out of foreign exchange transactions. The regulation and control of foreign exchange implies, therefore, regulation and control of foreign exchange transactions.
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OBJECTIVES After studying this unit, you should be able to: 1. Explain the objectives of exchange control; 2. Describe the principal provisions of Foreign Exchange Regula
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