SAFEMA Tribunal deletes ₹55,000 penalties for traders exchanging currency with authorised money changers.
Foreign Currency Exchange with Authorised Changers Is Legal
The SAFEMA Tribunal has set aside penalties totaling ₹55,000 imposed on traders for exchanging foreign currency with an RBI-licensed full-fledged money changer. The authority concluded that such transactions fall within the legal framework and do not constitute FEMA violations.
The Enforcement Directorate had alleged illegal possession and conversion, but the Tribunal noted that authorised dealers and money changers are permitted to buy and sell foreign exchange under delegated powers from RBI.
This ruling clarifies that individuals and businesses using authorised channels need not fear penal action for routine foreign currency transactions. Practitioners should verify the authorised status via RBI’s official list and retain transaction proof for compliance audits.
