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Foreign Exchange Management (Resident Accounts) Regulations, 2000

Description: Foreign Exchange Management (Resident Accounts) Regulations, 2000 Quiz
Number of Questions: 14
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Which of the following is not a resident account under the Foreign Exchange Management (Resident Accounts) Regulations, 2000?

  1. Resident Ordinary Rupee Account

  2. Non-Resident Ordinary Rupee Account

  3. Resident Foreign Currency Account

  4. Resident External Rupee Account


Correct Option: B
Explanation:

Non-Resident Ordinary Rupee Account is not a resident account under the Foreign Exchange Management (Resident Accounts) Regulations, 2000.

What is the maximum amount that a resident individual can remit abroad under the Liberalized Remittance Scheme (LRS)?

  1. $250,000 per financial year

  2. $100,000 per financial year

  3. $50,000 per financial year

  4. $150,000 per financial year


Correct Option: A
Explanation:

Under the Liberalized Remittance Scheme (LRS), a resident individual can remit up to $250,000 abroad per financial year.

Which of the following transactions is not permitted under the Foreign Exchange Management (Resident Accounts) Regulations, 2000?

  1. Opening a resident foreign currency account

  2. Remitting funds abroad for education purposes

  3. Remitting funds abroad for medical treatment

  4. Remitting funds abroad for investment purposes


Correct Option: D
Explanation:

Remitting funds abroad for investment purposes is not permitted under the Foreign Exchange Management (Resident Accounts) Regulations, 2000.

What is the maximum amount that a resident individual can hold in a resident foreign currency account?

  1. $250,000

  2. $100,000

  3. $50,000

  4. $150,000


Correct Option: A
Explanation:

A resident individual can hold up to $250,000 in a resident foreign currency account.

Which of the following is a requirement for opening a resident foreign currency account?

  1. PAN card

  2. Aadhaar card

  3. Passport

  4. All of the above


Correct Option: D
Explanation:

PAN card, Aadhaar card, and Passport are all required for opening a resident foreign currency account.

What is the maximum amount that a resident individual can remit abroad for education purposes under the LRS?

  1. $100,000 per academic year

  2. $50,000 per academic year

  3. $25,000 per academic year

  4. $75,000 per academic year


Correct Option: A
Explanation:

A resident individual can remit up to $100,000 abroad for education purposes under the LRS per academic year.

Which of the following is not a permitted purpose for remitting funds abroad under the LRS?

  1. Education

  2. Medical treatment

  3. Investment

  4. Maintenance of close relatives abroad


Correct Option: C
Explanation:

Investment is not a permitted purpose for remitting funds abroad under the LRS.

What is the maximum amount that a resident individual can remit abroad for medical treatment under the LRS?

  1. $100,000 per financial year

  2. $50,000 per financial year

  3. $25,000 per financial year

  4. $75,000 per financial year


Correct Option: A
Explanation:

A resident individual can remit up to $100,000 abroad for medical treatment under the LRS per financial year.

Which of the following is a requirement for remitting funds abroad under the LRS?

  1. PAN card

  2. Aadhaar card

  3. Passport

  4. All of the above


Correct Option: D
Explanation:

PAN card, Aadhaar card, and Passport are all required for remitting funds abroad under the LRS.

What is the maximum amount that a resident individual can remit abroad for maintenance of close relatives abroad under the LRS?

  1. $50,000 per financial year

  2. $25,000 per financial year

  3. $10,000 per financial year

  4. $35,000 per financial year


Correct Option: A
Explanation:

A resident individual can remit up to $50,000 abroad for maintenance of close relatives abroad under the LRS per financial year.

Which of the following is a close relative for the purpose of remitting funds abroad under the LRS?

  1. Spouse

  2. Children

  3. Parents

  4. All of the above


Correct Option: D
Explanation:

Spouse, children, and parents are all considered close relatives for the purpose of remitting funds abroad under the LRS.

What is the maximum amount that a resident individual can remit abroad for travel purposes under the LRS?

  1. $10,000 per financial year

  2. $5,000 per financial year

  3. $2,500 per financial year

  4. $7,500 per financial year


Correct Option: A
Explanation:

A resident individual can remit up to $10,000 abroad for travel purposes under the LRS per financial year.

Which of the following is not a permitted purpose for remitting funds abroad under the LRS?

  1. Travel

  2. Gifts

  3. Donations

  4. Charity


Correct Option: C
Explanation:

Donations are not a permitted purpose for remitting funds abroad under the LRS.

What is the maximum amount that a resident individual can remit abroad for gifts under the LRS?

  1. $25,000 per financial year

  2. $15,000 per financial year

  3. $10,000 per financial year

  4. $20,000 per financial year


Correct Option: A
Explanation:

A resident individual can remit up to $25,000 abroad for gifts under the LRS per financial year.

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