Hi,
Are banks prevented from holding dollar over and above certain limits?
are there any regualtions for this? like RBI Act, Banking Regulation Act of FEMA?
Ramanathan (Article Assistant) (135 Points)
25 September 2009
Hi,
Are banks prevented from holding dollar over and above certain limits?
are there any regualtions for this? like RBI Act, Banking Regulation Act of FEMA?
The Limit is not fixed.
Because It depends on the total borrowing & Lending of the Banks.
If the bank holds the Dollar above the limit, then It Must have to sell the same to the Central Bank with the Fine also on the same day, when the Banks Forex Limit Crosses.
The Limit is denominated in the Dollar. Not only Dollar But Every kind of the Forex is covered under the same limit.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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