1 A EVOLUTION OF FEMA, DIFFERENCE BW FERA & FEMA, FEATURES OF FEMA, OBJECTIVES
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 65 rapid-fire Q&A cards.
In which year was FEMA enacted to replace FERA?
FEMA (Foreign Exchange Management Act) was enacted in 1999 and came into force on June 1, 2000, replacing FERA 1973.
What year did FERA come into force in India?
FERA came into force in 1974.
What does FEMA stand for?
FEMA stands for Foreign Exchange Management Act, which is the primary legislation governing foreign exchange transactions in India.
Which ministry administers FEMA in India?
Ministry of Finance administers FEMA in India.
What does FERA stand for and when was it enacted?
FERA stands for Foreign Exchange Regulation Act, which was enacted in 1973 and governed foreign exchange transactions in India until it was replaced by FEMA in 2000.
What does the Enforcement Directorate do under FEMA?
It investigates and enforces FEMA violation cases.
What was the primary objective behind replacing FERA with FEMA?
FERA was replaced by FEMA to shift India's foreign exchange policy from regulation and conservation to management and facilitation, aligning with India's liberalised economic environment post-1991 reforms.
Under FEMA, what is the penalty for contravention of its provisions?
Penalty up to three times the amount involved or Rs 2 lakh.
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