Section 40:
Transactions in foreign exchange.
1[40. 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 2[or at such or 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 the section "authorised person" means a person who is entitled by or under
the 3[Foreign Exchange Regulation Act, 1973 (46 of 1973)], to buy, or as the case may be, sell, the
foreign exchange to which his demand relates.]
Notes:
1 Subs. by Act 23 of 1947, s. 4, for sections 40 and 41 (w.e.f. 18-4-1947).
2. Ins. by Act 54 of 1953, s. 5 (w.e.f. 30-12-1953).
3. Subs. by Act 1 of 1984, s. 5, for "Foreign Exchange Regulation Act, 1947 (7 of 1947)" (w.e.f. 15-2-1984).