Quick Answer: What Is FEMA Upsc?

What is FEMA limit?

Under the LRS, Indian citizens can transfer money to bank accounts abroad without needing to get special permission.

However, money can only be intended for a set number of purposes, and remittances are allowed only up to a maximum annual limit which is currently set at USD 250,000.2..

What was FEMA called before?

Federal Civil Defense AdministrationFEMA didn’t start off as FEMA—in fact, it has been reshuffled and reorganized more than perhaps any other key agency in recent US history. Harry Truman started FEMA’s forerunner, the Federal Civil Defense Administration, in 1950.

What is the penalty for violation of FEMA Act?

-(1) If any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorization is issued by the Reserve Bank, he shall, upon adjudication, be liable to a …

What are the powers of Ed?

Powers of Enforcement Directorate Powers of the Officers: The principal powers of the Officers of the ED are to investigate in cases of money laundering, initiate the proceedings of attachment of property, and to launch prosecution against the accused.

Which transactions are permitted without any approval under FEMA?

In terms of Section 5 of the FEMA, persons resident in India 1 are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by Central Government, such as remittance out of lottery winnings; remittance of income from …

What is TADA and POTA act?

Amended by. Act 16 of 1989, Act 43 of 1993. Status: Repealed. Terrorist and Disruptive Activities (Prevention) Act, commonly known as TADA, was an Indian anti-terrorism law which was in force between 1985 and 1995 (modified in 1987) under the background of the Punjab insurgency and was applied to whole of India.

What is IDR Act?

Industrial Development Regulation Act. The Industries (Development and Regulation) Act provides the conceptual and legal framework for industrial development and industries in India. It is briefly known as the IDR Act. The act was enacted in 1951 and a number of amendments have been made in the Act.

What do you mean by FEMA?

Foreign Exchange Management ActFEMA stands for ‘ Foreign Exchange Management Act ‘, an official Act that consolidates and amends laws regulating foreign exchange in India. 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”.

What is the importance of FEMA?

The main objective of FEMA was to help facilitate external trade and payments in India. It was also meant to help orderly development and maintenance of foreign exchange market in India. It defines the procedures, formalities, dealings of all foreignexchange transactions in India.

Who is an Authorised person under FEMA?

Section 2(c) of Foreign Exchange Management Act or FEMA states that ‘authorised person’ means an authorised dealer, money changer, off-shore banking unit or any other person authorised under section 10 (1) to deal in foreign exchange and foreign securities.

Where is FEMA applicable India?

FEMA (Foreign Exchange Management Act) is applicable to the whole of India and equally applicable to the agencies and offices located outside India (which are owned or managed by an Indian Citizen). The head office of FEMA is situated at New Delhi and known as Enforcement Directorate.

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.

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 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…•

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.

What are the objectives of FERA?

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 …

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.

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.