Evolution of FEMA
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 was the fundamental regulatory philosophy of FERA compared to FEMA?
FERA operated as a strict control regime, whereas FEMA shifted to a management and facilitation regime for foreign exchange.
What are the three main objectives of FEMA?
Facilitate external trade, promote orderly forex market, simplify transactions.
Under which law was a violation of foreign exchange provisions treated as a criminal offence?
Under FERA, violations of foreign exchange provisions were treated as criminal offences, unlike FEMA where they are civil offences.
Through which channel must all foreign exchange transactions be routed under FEMA?
Through Authorized Dealer (AD) banks licensed by RBI.
How does FEMA classify a violation of foreign exchange provisions?
Under FEMA, a violation of foreign exchange provisions is treated as a civil offence, not a criminal one.
What is the annual remittance limit under the Liberalized Remittance Scheme (LRS)?
USD 2,50,000 per financial year per resident individual.
What presumption applied to an accused person under FERA?
Under FERA, a person accused of a foreign exchange violation was presumed guilty until proven innocent.
Which entities are NOT eligible to use the Liberalized Remittance Scheme?
Corporates, partnership firms, HUFs, and trusts are ineligible.
MCQ practice tests
Chapter-wise mock tests with instant scoring.
More chapters in Module F
Master the full FOREIGNEXCHA syllabus
Every chapter of Foreign Exchange Facilities for Individuals — videos, tests, notes and one-liner decks in one place.