The foreign exchange management act India divides all foreign exchange transactions into current account transactions, which are largely permitted subject to documentation, and capital account transactions, which require specific RBI or government approval depending on the transaction type. FEMA India penalties for violations can reach up to three times the transaction amount, with continuing penalties of Rs.5,000 per day and personal liability on the directors responsible for the contravention. The Directorate of Enforcement has the power to search, seize, attach, and freeze assets equivalent in value to the foreign exchange violation, making compliance with the foreign exchange management act India a matter of financial protection, not just regulatory obligation. At Femabide Advisorz, we help businesses, NRIs, and investors understand FEMA India and build compliance structures that ensure every cross-border transaction is done correctly.