Reserve Bank of India Act,1934
Section 40. Transactions in foreign exchange
2[Transactions in foreign exchange. The Bank shall sell to or buy from any authorised person who makes a demand in that behalf at its office in Bombay, Calcutta, Delhi or Madras or at such of its branches as the Central Government may, by order, determine, foreign exchange at such rates of exchange and on such conditions as the Central Government may from time to time by general or special order determine, having regard so far as rates of exchange are concerned to its obligations to the International Monetary Fund:
PROVIDED that no person shall be entitled to demand to buy or sell foreign exchange of a value less than two lakhs of rupees.
Explanation: In this section “authorised person” means a person who is entitled by or under the Foreign Exchange Regulation Act, 1[1973 (46 of 1973)] to buy, or as the case may be, sell, the foreign exchange to which his demand relates.]
1. Substituted by Act No. 1 of 1984, w.e.f. 15/2/1984.
2. Substituted for sections 40 and 41 by Act No. 23 of 1947.