Section 3 - Dealing in Foreign Exchange, etc.

Foreign exchange restrictions: dealings with non authorised persons and cross border payments barred without Reserve Bank permission.

Prohibition on unauthorized dealings requires that, except under the Act, rules or Reserve Bank permission, no person shall deal in or transfer foreign exchange or foreign securities to non authorised persons, make payments to persons resident outside India, receive payments on their behalf other than through an authorised person (with a deeming rule where receipt occurs without corresponding inward remittance), or enter into financial transactions in India as consideration for acquisition or transfer of rights in assets outside India; 'financial transaction' is defined to include payments, bills of exchange, promissory notes, transfers of securities and acknowledgements of debt.