Is FEMA repealed?
Consequent upon issuance of the aforesaid rules and regulations, FEMA (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2017 (Fema 20-R) and FEM (Acquisition and Transfer of Immovable Property in India) Regulations, 2018 stands repealed and substituted.
What replaced FEMA in 1999?
The Parliament has enacted the Foreign Exchange Management Act,1999 to replace the Foreign Exchange Regulation Act, 1973.
What replaced FEMA act?
Foreign Exchange Regulation Act
FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).
When was Fera repealed?
Difference between FERA and FEMA – UPSC Notes:- Download PDF Here
| Foreign Exchange Regulation Act (FERA) | Foreign Exchange Management Act (FEMA) |
|---|---|
| FERA came into force from January 1, 1974. | FEMA came into force from June 2000. |
| FERA was repealed in 1998 by Vajpayee Government | FEMA succeeded FERA |
Is FEMA still in force in India?
Is FEMA still in force in India? Yes, still in force in India. The Foreign Exchange Management Act (FEMA) was created in 1999 to replace the outdated Foreign Exchange Regulation Act (FERA) of 1973. FEMA was a modernisation of the Indian economy and created to liberalise and deregulate the Indian market.
Who is Authorised person under FEMA?
Categories of Authorised Persons Under FEMA:
| Category | Entities |
|---|---|
| Authorized Dealer – Category I | Commercial Banks, State Co-op Banks, Urban Co-op Banks |
| Authorized Dealer- Category II | Upgraded FFMCs, Coop Banks, Regional Rural Banks (RRBs), others |
| Authorized Dealer – Category III | Select Financial and other institutions |
What are the various provisions of FEMA Act 1999?
Major Provisions of FEMA Act 1999: Control over the realization of export proceeds. Dealing in foreign exchange through authorized persons like an authorized dealer or money changer etc. Any person can sell or withdraw foreign exchange, without any prior permission from RBI and then can inform RBI later.
Who administers the FEMA Act 1999?
Foreign Exchange Management Act, 1999 (FEMA) is administered through the authorised persons and is based on the declarations and averments made to them by persons while undertaking the transactions.
Why was Fera repealed?
This was done in order to relax the controls on foreign exchange in India. FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.
Why was FERA Act changed to FEMA act?
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.
Why FERA was repealed?
Switch from FERA This was done in order to relax the controls on foreign exchange in India. FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.
Who is Authorised under FEMA 1999?
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.