Holding of foreign exchange [Section 4 of FEMA Act,1999] - FEMA Ready Reckoner - FEMA

Holding of foreign exchange As per Section 4 , Save as otherwise provided in this Act, no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India. Example:- I f an Indian resident receives bank balance of US$ 10,000 from his uncle in London, the Indian resident cannot hold on to the foreign funds. He is supposed to bring back the funds as provided in section 8.