Question: What Is The Importance Of FEMA?

What does FEMA mean?

Federal Emergency Management AgencyThe Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security, initially created under President Jimmy Carter by Presidential Reorganization Plan No.

3 of 1978 and implemented by two Executive Orders on April 1, 1979..

What are Fera companies?

FERA companies are the companies in which the non-resident interest (viz., foreign equity share capital) was more than 40%.

What are the features of FEMA?

Main Features Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign exchange and foreign security is restricted. It is FEMA that gives the central government the power to impose the restrictions.

How does FEMA money work?

FEMA’s Individual Assistance Program provides financial assistance and direct services to eligible individuals and households who have uninsured and underinsured necessary expenses and serious needs. The program is not a substitute for insurance and cannot pay for all losses caused by a disaster.

Who controls foreign exchange?

Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents, on the purchase/sale of local currency by nonresidents, or the transfers of any currency across national borders.

What is difference between FERA and FEMA?

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. …

Why is FEMA important?

FEMA (Federal Emergency Management Agency) mission is to support the citizens and first responders to promote that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

Why was FEMA introduced?

The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.

Is FEMA still in force in India?

In the budget of 1997-98, the government had proposed to replace FERA-1973, by FEMA (Foreign Exchange management act). After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. …

What is the power of FEMA?

Before a major disaster or emergency declaration, the Stafford Act authorizes FEMA to predeploy personnel, who may be from various Federal agencies, and equipment to reduce immediate threats to life, property, and public health and safety, and to improve the timeliness of its response.

Who is an Authorised person under FEMA?

An ” Authorized Person” under FEMA, is a person who is authorized by Reserve Bank to deal in Foreign Exchange. For being registered as an ” Authorized Person”, necessary application along with relevant documents has to be furnished to Reserve Bank.

What are the main provisions of FEMA?

The major provisions of FEMA, 1999 relate to following matters :Dealing in foreign exchange, etc.Holding of foreign exchange, etc.Current account transactions.Capital account transactions.Export of goods and services.Realization and repatriation of foreign exchange.More items…•

What are the salient features of FERA?

Salient Features of FERA: 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. Authorisation to the money changers for conversion of currencies as per the rates determined by RBI.

Why was Fera replaced?

The Foreign Exchange Regulation Act (FERA) was passed in 1973; the main purpose of which was to ensure the use of foreign exchange. The FERA was creating obstacles in the development of the country so government replaced it by FEMA in 1999. This article is pointing the differences between the FERA and FEMA.

What is FEMA compliance?

FEMA (Foreign Exchange Management Act, 1999) has acted as a catalyst for the growth and development of various sectors in India. The main aim of FEMA is to facilitate external trade, balance the payments, promote the orderly development, and maintain the foreign exchange market in India.