Section 12 - Power of Reserve Bank to inspect authorised person :
Foreign Exchange Management Act 1999
What is the Power of Reserve Bank to inspect authorised person?
Section 12 of FEMA Act 1999
Section 12 of Foreign Exchange Management Act 1999 : "Power of
Reserve Bank to inspect authorised person"
12. (1) The Reserve Bank may, at any time, cause
an inspection to be made, by any officer of the
Reserve Bank specially authorised in writing by the
Reserve Bank in this behalf, of the business of any
authorised person as may appear to it to be
necessary or expedient for the purpose of-
(a) verifying the correctness of any statement, information
or particulars furnished to the Reserve Bank;
(b) obtaining any information or particulars which such
authorised person has failed to furnish on being called upon to
(c) securing compliance with the provisions of this Act or of
any rules, regulations, directions or orders made thereunder.
(2) It shall be the duty of every authorised person,
and where such person is a company or a firm, every
director, partner or other officer of such company or
firm, as the case may be, to produce to any officer
making an inspection under sub-section (1), such books,
accounts and other documents in his custody or power and
to furnish any statement or information relating to the
affairs of such person, company or firm as the said
officer may require within such time and in such manner
as the said officer may direct.