Question: What Was The Need Of FEMA When Fera Was There?

Why was Fera replaced?

However, the objective of FERA did not quite have the effect that was envisioned and the Indian economy continued Hence it was replaced by FEMA..

What is the FERA Act?

The Federal Emergency Relief Administration (FERA) was a program established by President Franklin Roosevelt in 1933, building on the Hoover administration’s Emergency Relief and Construction Act. … FERA’s main goal was to alleviate household unemployment by creating new unskilled jobs in local and state government.

Why was Fera replaced by FEMA?

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 FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and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.

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.

When was Fera established?

May 1933Federal Emergency Relief Administration/Founded

What is FEMA rule?

FEMA 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 FEMA and its features?

The objective of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments for promoting the orderly development and maintenance of foreign exchange market in India. FEMA extends to the whole of India.

Is FEMA a civil law?

3) Under FEMA, foreign exchange transactions are divided into two categories, they are capital account and current account transactions. … 6) This FEMA Act is a civil law and any kind of contraventions of the Act provide for arrest only in the exceptional cases.

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.

Why was FEMA introduced?

FEMA was introduced because the FERA didn’t fit in with post-liberalisation policies. … The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments.

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 …

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.

Was the FERA New Deal successful?

Was FERA a success? Through research, it seems to be that FERA wasn’t 100% a success. Changes did happen like Relief allowances per family in Cook County went from $29.15 in December 1932 to $33.11 in June 1934, and to $38.65 in June 1935.

Is FEMA still in force in India?

1999. After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. Under the FEMA, provisions related to foreign exchange have been modified and liberalized so as to simplify foreign trade. … Foreign Exchange Regulation Act (FERA) was promulgated in 1973 and it came into force on January 1, 1974.

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.

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 is the importance of FEMA?

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.