The Foreign Exchange Management Act, 1999

In one line

What this Act says

Civil law (replacing FERA) that manages foreign-exchange transactions — what you can remit, hold or invest abroad, and what penalties apply for breach.

• Contravention of FEMA / rules / directions

  §13(1)

  Penalty up to 3× the amount involved (if quantifiable) or ₹2 lakh; continuing — additional ₹5,000 per day.

• Non-payment of penalty within 90 days

  §14

  Civil imprisonment up to 6 months to 3 years (based on amount).

• Holding / acquiring foreign exchange without permission

  §13(2)

  Confiscation by the Adjudicating Authority + penalty under §13.

Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.

Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.

Sources

Read the Act yourself

We always show you the local source PDF and at least one verifiable online reference, so you can check anything we say.