Assertion (A): Reserve Bank of India is an important regulatory and administrative authority to execute FEMA provisions. Reason (R): Being monetary authority and custodian of foreign exchange, Reserve Bank of India enjoys requisite expertise of FEMA administration. In the context of the above two statements, which one of the following option is correct?

The correct answer is: Both (A) and (R) are correct and (R) is the right explanation of (A).

The Reserve Bank of India (RBI) is the central bank of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is the apex monetary authority of India and is responsible for formulating and implementing monetary policy, regulating the financial system, and issuing currency.

The RBI is also responsible for administering the Foreign Exchange Management Act (FEMA), 1999. FEMA is a law that regulates foreign exchange transactions in India. The RBI is the regulatory and administrative authority for FEMA. It is responsible for issuing licenses and approvals for foreign exchange transactions, and for monitoring and enforcing compliance with FEMA provisions.

The RBI is well-equipped to administer FEMA because it has the requisite expertise in the field of foreign exchange. The RBI has a long history of dealing with foreign exchange transactions, and it has a team of experts who are familiar with the FEMA regulations.

Therefore, both (A) and (R) are correct and (R) is the right explanation of (A).