fema act

Persons residing in India are free to buy or sell foreign exchange for any current account transaction under Section 5 of the FEMA.

It is for the transactions except which the Central Government has prohibited using foreign exchange, like remittance of lottery winnings; remittance of income from racing/riding, etc. or any other hobby; remittance for purchasing lottery tickets. Read more about <a target='_blank' rel='nofollow' href="https://getlegalindia.com/fema-act/">FEMA act</a> in detail. 

Yes, but lender should be Non Resident Indian(NRI)