1.       AUTHORISED RATES OF FOREIGN EXCHANGE 

1.       Section 4 (2) of the Act lays down that, except with the general or special permission of the State Bank, all transactions in foreign exchange shall be carried out at rates authorised by the State Bank. A general permission has been given to Authorised Dealers to determine their own rates of exchange, both for ready and forward transactions for the public, subject to the condition that the margin between the buying and selling rates should not exceed fifty paisa per US dollar or its equivalent in other currencies. This condition does not apply to inter-bank transactions.

2.       In the case of an import bill against which no forward cover has been taken by the importer, the exchange rate prevailing on the date of lodgement of the bill would apply.