Section 3 in The Foreign Exchange Management (Borrowing Or Lending In Foreign Exchange) Regulations, 2000
3. Prohibition to borrow or lend in foreign exchange. - Save as otherwise provided in the Act, rules or regulations made thereunder, no person resident in India shall borrow or lend in foreign exchange from or to a person resident in or outside India:
Provided that the Reserve Bank may, for sufficient reasons, permit a person to borrow or lend in foreign exchange from or to a person resident outside India.
