Regularization of foreign assets: payment of tax and penalty prevents FEMA proceedings, subject to RBI permission or repatriation. A resident who declares an undisclosed foreign asset and pays tax and penalty under the Black Money Act is not subject to proceedings under the Foreign Exchange Management Act in respect of that asset. If the declarant intends to continue holding the asset, they must apply to the Reserve Bank for permission where necessary; if they do not intend to retain the asset or if permission is refused, they must dispose of the asset and repatriate proceeds to India through the banking channel within the period prescribed by the Reserve Bank.