BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Authorized dealers
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Foreign dealers
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Overseas branches
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Approved dealers
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Detailed explanation-1: -FFMCs are authorised to purchase foreign exchange from non-residents visiting India and residents, and to sell foreign exchange for private and business travel purposes only.
Detailed explanation-2: -An Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities (the list of ADs is available on www.rbi.org.in) and normally includes banks.
Detailed explanation-3: -There are currently 36 exchange banks, also referred to as foreign banks, functioning in India. There are 204 branches in their network.
Detailed explanation-4: -Authorised dealer-Category I All the nationalised banks, leading non-nationalised banks as well as foreign banks are chosen as authorised dealers category I to deal in foreign exchange. They may deal in other transactions in foreign exchange such as bill of exchange, cheques, letters of credit, deposits etc.
Detailed explanation-5: -FFMCs are authorized to purchase foreign exchange from resident and non-resident visiting India and to sell Foreign Exchange for certain approved purposes. The main objective of the enactment of FFMCs is to provide easy access to foreign exchange transaction to common masses.