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Needed a Document for foreign exchange?
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Foreign Exchange Management Act (FEMA)
FEMA is an acronym for the Foreign Exchange Management Act, 1999 and is an act of the Indian parliament. It is the regulation relating to foreign exchange, external trade and payments in the country. It replaced the earlier foreign exchange regulation law known as the FERA (Foreign Exchange Regulation Act). FERA was considered draconian while FEMA is more accommodating and intended to facilitate external trade and payments rather than control it.
The FEMA in contrast to its predecessor, makes foreign exchange-related offenses civil offenses instead of criminal. FERA had become unsuited for the government of India’s pro-liberalization policies. FEMA allows the Reserve Bank of India and the union government to pass laws and rules concerned with foreign exchange in line with the country’s foreign trade policy.
Foreign Exchange Regulation Act (FERA)
Business laws and regulations are very important from the UPSC exam point of view. They form a part of polity as well as economy. In this article, you can read about the Foreign Exchange Regulation Act (FERA), the draconian foreign exchange legislation, which was repealed and replaced with a more business-friendly regulation. FERA and the newer law FEMA are both important for the IAS exam.
Business laws and regulations are very important from the UPSC exam point of view. They form a part of polity as well as economy. In this article, you can read about the Foreign Exchange Regulation Act (FERA), the draconian foreign exchange legislation, which was repealed and replaced with a more business-friendly regulation. FERA and the newer law FEMA are both important for the IAS exam.
FERA or the Foreign Exchange Regulation Act was a law passed in 1973. It imposed severe restrictions on the types of payments and the transactions in foreign exchange and securities, and those transactions that impacted the foreign exchange as well as currency import and export indirectly. The purpose behind the FERA was to regulate payments and foreign exchange. It also intended to conserve foreign exchange, better the usage of foreign exchange in order to boost the country’s economic development. In 1998, the Indian government repealed FERA and replaced it with the FEMA or the Foreign Exchange Management Act. FEMA is more liberal and it eased foreign exchange controls and lessened restrictions on foreign investment.
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Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos?
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Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos?.
Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for foreign exchange? Related: Macro Economics - Notes & Videos?.
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