WHAT THIS TOPIC MAINLY COVERS, FEMA DECLARATION - CORE MEANING, MEANING OF NRI, MAIN SCHEMES AVAILABLE TO NRIS ELIGIBLE NON - RESIDENTS, PERMISSIBLE CREDITS AND DEBITS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What does FEMA stand for and in which year did it come into force?
FEMA stands for Foreign Exchange Management Act and it came into force on 1st June 2000, replacing the earlier FERA (Foreign Exchange Regulation Act) of 1973.
What is the full form of FEMA and when was it enacted?
Foreign Exchange Management Act, enacted in 1999.
What is the primary objective of FEMA with respect to foreign exchange?
The primary objective of FEMA is to facilitate external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India.
Which act did FEMA replace and what was the key shift in approach?
FEMA replaced FERA; shifted from criminal to civil offence approach.
Who is classified as a Non-Resident Indian (NRI) under FEMA?
An NRI under FEMA is an Indian citizen or a person of Indian origin who is resident outside India, meaning a person who has been residing outside India for an uncertain period or for employment, business, or vocation.
What is the definition of 'current account transaction' under FEMA?
Transaction not altering assets or liabilities outside India.
What is the residential status criterion under FEMA for determining whether a person is a resident?
Under FEMA, a person is considered a resident in India if they have stayed in India for more than 182 days during the preceding financial year, subject to certain exceptions.
What is a 'capital account transaction' under FEMA?
Transaction that alters assets or liabilities outside India.
Video classes for this chapter
More chapters in Module C
Related articles & notes
In-depth Foreign Exchange Facilities for Individuals guides from our blog.
Master the full FOREIGNEXCHA syllabus
Every chapter of Foreign Exchange Facilities for Individuals — videos, tests, notes and one-liner decks in one place.