Page 149 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes (c) for any other purpose, in such circumstances as would indicate his intention to
stay outside
India for an uncertain period.

A person who has come to or stays in India, in either case, otherwise than:
(a) for or on taking up employment in India, or
(b) for carrying on in India a business or vocation in India, or

for any other purpose, in such circumstances as would indicate his intention to stay
in India for an uncertain period.
2. Any person or body corporate registered or incorporated in India.
3. An office, branch or agency in India owned or controlled by a person resident in India.

Section 2 (iv), FEMA holds that a person for the purpose of the Act means:

1. An individual

2. An H.U.F.
3. A company
4. A firm
5. An association of persons or a body of individuals, whether incorporated or not

6. Every juridical person, not falling within any of the preceding sub-clauses, and
7. Any agency, officer or branch owned or controlled by person.
The financial year has not been defined under FEMA, but for this, reference may be taken of the
Income Tax Act. The latter holds a financial year to commence from 1st April to 31st March.

Notes FERA contained 81 sections (some were deleted by 1993 amendment), out of which
32 sections were relating to the operational part and the rest were rating to penalties,
Enforcement Directorate etc.

Self Assessment

Fill in the blanks:
11. The financial year has not been defined under ..........................., but for this, reference may
be taken of the Income Tax Act.

12. ..................................Banking has wider connotation; it also include designing, developing
and marketing of customized products/services.
13. FEMA holds that a person for the purpose of the Act means an ............................ of persons
or a body of individuals, whether incorporated or not.
14. Section ...............................FEMA holds that notwithstanding anything contained in any
other law for the time being in force, no court shall take notice of any contravention under
Section 51 of the repealed Act after the expiry of a period of two years from the date of the
commencement of this Act.

15. In retail lending an ................................ market segment is just wholesale banking.

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