https://www.taxtmi.com/caselaws?id=98240 A deposit of unspent foreign exchange in a current account with foreign bank branches was held not to be lending within section 4(1) of the Foreign Exchange Regulation Act, 1947, because the arrangement was only for safekeeping and the traveller's own use, not a loan. By contrast, foreign exchange acquired for a specific purpose had to be used for that purpose, and any unutilised balance had to be sold without delay to an authorised dealer. Retaining the unused foreign exchange in bank accounts for years breached section 4(3), so liability remained only for that statutory default. en-us Mon, 30 Aug 1965 00:00:00 +0530 Tue, 19 Aug 2014 20:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98240 A deposit of unspent foreign exchange in a current account with foreign bank branches was held not to be lending within section 4(1) of the Foreign Exchange Regulation Act, 1947, because the arrangement was only for safekeeping and the traveller's own use, not a loan. By contrast, foreign exchange acquired for a specific purpose had to be used for that purpose, and any unutilised balance had to be sold without delay to an authorised dealer. Retaining the unused foreign exchange in bank accounts for years breached section 4(3), so liability remained only for that statutory default. Case-Laws Companies Law Mon, 30 Aug 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98240