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Duties of Authorised Person [ Section 10(4)] - FEMA Ready Reckoner - FEMAExtract Duties of Authorised Person The authorised person shall comply with directions (special or General) or orders of RBI in all his dealing in foreign exchange or foreign securities. An authorised person except with the previous permission of the Reserve Bank, can not engage in any transaction involving any foreign exchange or foreign security which is not in conformity with the terms of his authorisation under this section. [ Section 10(4) of FEMA Act ] The duties of authorised dealer under section 10(4) of FEMA Act was considered in CITIBANK, N. A. vs Director (2010). In this case the appellant -Bank was granted license to act as authorised dealer under section . It was alleged that the appellant had allowed deposit foreign currency totaling to US Dollars 72800 in NRE account on nine different occasions within short span of one week. In reply to the show-cause notice, the appellant -bank denied the allegation. Penalty was imposed on the ground of contravention, among others, of Section 10(4) of FEMA Act .
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