What is Meant by Financial Emergency?

By Shubhra Anand Jain|Updated : July 13th, 2022

Article 360 of the Indian constitution states the conditions under which the President can declare a financial emergency in the nation. As per this article, a financial emergency can officially be declared under the following conditions - 

  • When the President is sure that the financial stability of the nation (or a part of the nation) is under threat.
  • When both the houses of the Parliament approve the President’s statement within a duration of two months.

Define the Term Financial Emergency?

In case a financial crisis arises in the nation, the President shall impose a financial emergency, as under Article 360 of the Indian constitution. Once approved by both the Parliament houses, this imposition can stay for as long as the situation demands.

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FAQ's on What is Meant by Financial Emergency?

  • In case India undergoes a severe financial crisis, the President may declare a situation of financial emergency under Article 360 of the constitution.

  • The article in the constitution of India that provides for a case of financial emergency in the nation is Article 360. Once imposed by the President, the two houses of the Parliament must approve it within two months.

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