How is the Foreign Exchange Management Act different from the Foreign Exchange Regulation Act?
Table of Contents
- 1 How is the Foreign Exchange Management Act different from the Foreign Exchange Regulation Act?
- 2 What is the definition of foreign exchange under the Foreign Exchange Management Act 1999?
- 3 Why was Foreign Exchange Regulation Act was replaced with Foreign Exchange Management Act?
- 4 What is Foreign Exchange Regulation Act (Fera)?
- 5 What is Foreign Exchange Regulation Act of India?
How is the Foreign Exchange Management Act different from the Foreign Exchange Regulation Act?
FERA was an act promulgated, to regulate payments and foreign exchange in India, on the contrary FEMA is an act to promote orderly management of the foreign exchange in India.
How is Foreign Exchange Management Act FEMA different from the Foreign Exchange Regulation Act Fera?
FERA was enacted to regulate the foreign exchange and payments in India. Its main objective was to conserve the forex transactions. FEMA was enacted to remove the stringent regulations on foreign exchange and promote an orderly management of foreign exchange and payments.
What replaced the Foreign Exchange Regulation Act Fera in 1999?
FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).
What is the definition of foreign exchange under the Foreign Exchange Management Act 1999?
o the taking out of India to a place outside India any goods, o provision of services from India to any person outside India; • “foreign currency” means any currency other than Indian currency; • “foreign exchange” means foreign currency and includes,- o deposits, credits and balances payable in any foreign currency.
What are the features of FERA?
Salient Features of FERA:
- Authorisation by RBI to any person/company to deal in foreign exchange.
- Authorisation to the dealers by the Reserve Bank of India for transacting foreign currencies, subject to review and revocation of the authorisation in the case of non-compliance.
Why govt formed FERA Act in 1973 discuss different provisions related to it?
The Foreign Exchange Regulation Act (FERA) was legislation passed in India in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange (forex) and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.
Why was Foreign Exchange Regulation Act was replaced with Foreign Exchange Management Act?
It was passed in the 29th December 1999 in parliament, replacing the Foreign Exchange Regulation Act (FERA). This act makes offences related to foreign exchange civil offenses….Foreign Exchange Management Act.
| Foreign Exchange Management Act, 2000 | |
|---|---|
| Enacted by | Parliament of India |
| Enacted | 29 December 1999 |
| Repeals | |
| Foreign Exchange Regulation Act |
What are the salient features of FERA and FEMA?
An Act to consolidate and amend the law regulating certain payments, dealings in foreign exchange and securities, transactions indirectly affecting foreign exchange and the import and export of currency, for the conservation of the foreign exchange resources of the country and the proper utilisation thereof in the …
Is FEMA more favorable to international trade compared to Fera?
Foreign Exchange Management Act, 1999 (FEMA) emerged as a replacement or say an improvement over the old Foreign Exchange Regulation Act, 1973 (FERA)….Comparison Chart.
| Basis for Comparison | FERA | FEMA |
|---|---|---|
| Number of sections | 81 | 49 |
| Introduced when | Foreign exchange reserves were low. | Foreign exchange position was satisfactory. |
What is Foreign Exchange Regulation Act (Fera)?
Foreign Exchange Regulation Act (FERA) was introduced at a time when foreign exchange (Forex) reserves of the country were low. FERA proceeded on presumption that all foreign exchange earned by Indian residents rightfully belonged to the Government of India and had to be collected and surrendered to the Reserve Bank of India (RBI).
What is Fera and what is its purpose?
FERA is an act which is enacted to regulate payments and foreign exchange in India, is FERA. FEMA an act initiated to facilitate external trade and payments and to promote orderly management of the forex market in the country.
What is the purpose of the foreign exchange Management Act?
FEMA an act initiated to facilitate external trade and payments and to promote orderly management of the forex market in the country. Foreign exchange reserves were low. Foreign exchange position was satisfactory.
What is Foreign Exchange Regulation Act of India?
It is a set of regulations that empowers the Reserve Bank of India to pass regulations and enables the Government of India to pass rules relating to foreign exchange in tune with the foreign trade policy of India. Which Act did FEMA replace? FEMA replaced an act called Foreign Exchange Regulation Act (FERA).