Section 3: Dealing in foreign exchange, etc.

Q: What does Section 3 of The Foreign Exchange Management Act, 1999 (FEMA) deal with?

Section 3 FEMA pertains to "Dealing in foreign exchange, etc.". It is part of the The Foreign Exchange Management Act, 1999, a legislation enacted by the Parliament of India. Section 3 of The Foreign Exchange Management Act, 1999 (FEMA) governs dealing in foreign exchange, etc. As verified on 19 May 2026.

Q: Is Section 3 FEMA still in force?

Yes, Section 3 of the The Foreign Exchange Management Act, 1999 is currently in force across the Republic of India.

Q: What is धारा 3 FEMA?

धारा 3 FEMA is the Devanagari Hindi reference for Section 3 of the The Foreign Exchange Management Act, 1999. Section 3 of The Foreign Exchange Management Act, 1999 (FEMA) governs dealing in foreign exchange, etc. As verified on 19 May 2026.

Q: What is Dhara 3 FEMA?

Dhara 3 FEMA is the Roman Hindi reference for Section 3 of the The Foreign Exchange Management Act, 1999. "Dhara" means "Section" in Hindi. Section 3 of The Foreign Exchange Management Act, 1999 (FEMA) governs dealing in foreign exchange, etc. As verified on 19 May 2026.

Q: How to cite Section 3 of The Foreign Exchange Management Act, 1999?

Cite as: "Section 3, The Foreign Exchange Management Act, 1999 (FEMA)" in legal briefs. For academic writing, use the BlueBook format: The Foreign Exchange Management Act, 1999, § 3 (India).

Law on Tips Editorial Board

Save as otherwise provided in this Act, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall—

(a) deal in or transfer any foreign exchange or foreign security to any person not being an authorised person;

(b) make any payment to or for the credit of any person resident outside India in any manner;

(c) receive otherwise through an authorised person, any payment by order or on behalf of any person resident outside India in any manner.

Explanation.—For the purpose of this clause, where any person in, or resident in, India receives any payment by order or on behalf of any person resident outside India through any other person (including an authorised person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorised person;

(d) enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person.

Explanation.—For the purpose of this clause, "financial transaction " means making any payment to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt.