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JAIIB PPB Unit 8 — Foreign Exchange Remittance Facilities for Individuals: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 8 — Foreign Exchange Remittance Facilities for Individuals (Module A — General Banking Operations). The Mock Centre holds 61 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module A61 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Timeline: Defence of India Rules (3 Sep 1939) → FERA 1947 → FERA 1973 → FEMA (1 Jun 2000); offences criminal → CIVIL; GIFT City excepted; import substitution → export promotion.
  2. Definitions: resident = >182 days preceding FY; NRI = Indian citizen abroad; PIO excludes Bangladesh/Pakistan citizens; 'relative' = Sec. 2(77) Companies Act 2013; 'not permanently resident' ≤ 3 years.
  3. Powers: Government restricts CURRENT account (FEM CAT Rules 2000); RBI restricts CAPITAL account; transactions only via Authorized Persons (AD-I full range).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
FEMA replaced which Act, effective from:
Why (a): FEMA 1999 replaced FERA 1973 with effect from 1 JUNE 2000 — management, not control.
Question 2 of 5
A Non-Resident Indian (NRI) is:
Why (a): An NRI is a CITIZEN OF INDIA resident abroad — Indian passport plus non-resident status; foreign citizens of Indian origin are PIOs/OCIs, a separate family.
Question 3 of 5
The maximum LRS limit per person per financial year is:
Why (c): USD 2,50,000 per resident individual per FY — all permitted current + capital purposes combined.
Question 4 of 5
LRS is available to:
Why (b): LRS is an INDIVIDUALS-only scheme; minors qualify with the natural guardian countersigning.
Question 5 of 5
The Encashment Certificate (needed for reconversion of unspent rupees) is issued by:
Why (a): The AP issues it when converting forex to INR — the traveller preserves it to convert leftovers back.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
FERAFEMACriminal-offence CONTROL vs civil-offence MANAGEMENT
USD 10,000 (CDF)USD 5,000 (CDF)Notes+TCs trigger vs currency-notes-alone trigger
Practise all 61 questions on Unit 8. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.