SAFEMA Tribunal deletes penalties of ₹50,000 and ₹5,000 for traders exchanging currency with RBI-licensed money changers.
FEMA Penalties Dropped for Authorized Currency Exchange
The SAFEMA Tribunal has deleted FEMA penalties of ₹50,000 and ₹5,000 imposed on traders who exchanged foreign currency through authorised money changers. The Enforcement Directorate had alleged illegal dealing in foreign exchange, but the Tribunal found full compliance with RBI regulations.
The traders had converted foreign currency notes received from NRI customers via RBI-approved full-fledged money changers. The Tribunal held that such transactions fall within the permitted channels under FEMA Notification No. 21/2015-RB, and do not amount to contravention.
"Exchange of foreign currency through authorised dealers is not only legal but encouraged for transparency in forex transactions."
This ruling clarifies the legality of routine retail forex exchanges. It protects small businesses and service providers who rely on authorised changers for legitimate operations. Practitioners can use this to defend clients facing similar charges, especially in tourist or NRI-centric economies, where such transactions are common and compliant.
