- What is Fera in economics?
- What was the outcome of the FERA?
- What is FEMA declaration?
- Which law took place of FERA?
- What is meant by foreign exchange?
- What is the purpose of Fera companies?
- Why was Fera replaced?
- What are the objectives of FEMA?
- Why FEMA declaration is required?
- How many sections are in FEMA?
- When was Fera established?
- What are the features of FEMA Act?
- What is difference between FERA and FEMA?
- What are the salient features of FERA?
- Is FEMA still in force in India?
What is Fera in economics?
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..
What was the outcome of the FERA?
The New Deal in Action: FERA Gives Economic Aid The act established the Federal Emergency Relief Administration, a grant-making agency authorized to distribute federal aid to the states for relief. By the end of December 1935, FERA had distributed over $3.1 billion and employed more than 20 million people.
What is FEMA declaration?
Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. It has brought a new management regime of foreign exchange consistent with the emerging frame work of the World Trade Organisation (WTO).
Which law took place of FERA?
(1) This Act may be called the Foreign Exchange Regulation Act, 1973. (2) It extends to the whole of India. (3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.
What is meant by foreign exchange?
Foreign exchange, or forex, is the conversion of one country’s currency into another. … In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
What is the purpose of Fera companies?
The objective of FERA was to regulate certain payment dealings in foreign exchange and securities transactions that indirectly affects foreign exchange of import and export of currency and to conserve precious foreign exchange and to optimize the proper utilization of foreign exchange so as to promote the economic …
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….Hemant Singh.S.N.FERAFEMA3.It had 81 sections.It had 49 sections.8 more rows•Jan 24, 2018
What are the objectives of FEMA?
The main objective of FEMA is to facilitate external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. FEMA deals with provisions relating to procedures, formalities, dealings, etc. of foreign exchange transactions in India.
Why FEMA declaration is required?
As per the extant provisions, an exporter is required to submit the SDF form along with Shipping Bills for export of goods. … Cconsequently, RBI has desired that the declaration of foreign exchange remittance under the Foreign Exchange Management Act, 1999 (given below) may be made a part of the Shipping Bill.
How many sections are in FEMA?
49 sectionsFEMA contains 7 Chapters divided into 49 sections of which 12 sections cover operational part and the rest contravention, penalties, adjudication, appeals, enforcement directorate, etc.
When was Fera established?
May 1933Federal Emergency Relief Administration/Founded
What are the features of FEMA Act?
Main Features of Foreign Exchange Management Act, 1999It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country.All financial transactions concerning foreign securities or exchange cannot be carried out without the approval of FEMA.More items…
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. …
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.
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. …