Section 40 of the Reserve Bank of India Act, 1934 – Transactions in foreign exchange

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Section 40: Transactions in foreign exchange

The Bank shall sell to or buy from any authorised person who makes a demand in that behalf at its office in Bombay, Calcutta, Delhi or Madras or at such or its branches as the Central Government may, by order determine, foreign exchange at such rates of exchange and on such conditions as the Central Government may from time to time by general or special order determine, having regard so far as rates of exchange are concerned to its obligations to the International Monetary Fund:

Provided that no person shall be entitled to demand to buy or sell foreign exchange of a value less than Rs. 2,00,000.

Explanation.—In the section “authorised person” means a person who is entitled by or under the Foreign Exchange Regulation Act, 1973 (46 of 1973), to buy, or as the case may be, sell, the foreign exchange to which his demand relates.

Source: official text of The Reserve Bank of India Act, 1934 as published on India Code (PDF). All sections of the Reserve Bank of India Act, 1934.

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