Here are some major differences between the Foreign Exchange Regulation Act and the Foreign Exchange Management Act: FERA and FEMA manage India's foreign currency and payments differently. In 1973, the Indian Parliament passed FERA, which took effect on January 1, 1974, to manage and save foreign cuRead more
Here are some major differences between the Foreign Exchange Regulation Act and the Foreign Exchange Management Act:
- FERA and FEMA manage India’s foreign currency and payments differently. In 1973, the Indian Parliament passed FERA, which took effect on January 1, 1974, to manage and save foreign currency at a time of low reserves. FEMA replaced the restricted FERA framework on June 1, 2000, after Parliament authorized it in 1999 to facilitate orderly foreign currency management.
- FERA’s rigorous restrictions reflected the economy and focused on foreign currency management and conservation. A complex 81-section law defined “Authorized persons” carefully and based residence status on citizenship. FERA violations were criminal crimes that carried the possibility of jail and barred legal representation. In addition, infractions were non-compoundable and could not be addressed outside of court.
- However, FEMA’s free and flexible regulation reflected India’s 1990s liberalization ambitions. With just 49 parts, FEMA’s structure is simpler and defines “Authorized persons,” including banks. The past six months of presence in India determines FEMA resident status, not citizenship. FEMA violations are civil infractions punishable by fines, but failure to pay may lead to incarceration. In contrast to FERA, breaches may be settled and the accused can be represented. FEMA added specific directors and courts to streamline appeals compared to FERA Supreme Court appeals.
- FERA’s cautious approach needed RBI approval for FX transactions, limiting operational flexibility. This regulation was repealed by FEMA, making currency transactions easier. FEMA also included information technology requirements to support a modernizing economy, unlike FERA. FERA to FEMA represents India’s transformation from a controlled to a liberalized and growth-oriented economy.
Reasons for the Rise of the Roman Empire: 1. Military Conquests: Successful military campaigns expanded territory and influence, securing resources and wealth. 2. Strategic Alliances: Diplomatic alliances with neighboring states and tribes bolstered Rome's power and stability. 3. Administrative EffiRead more
Reasons for the Rise of the Roman Empire:
1. Military Conquests: Successful military campaigns expanded territory and influence, securing resources and wealth.
2. Strategic Alliances: Diplomatic alliances with neighboring states and tribes bolstered Rome’s power and stability.
3. Administrative Efficiency: Effective governance and legal reforms facilitated centralized control and integration of conquered regions.
4. Economic Prosperity: Trade, agriculture, and taxation generated significant wealth, supporting infrastructure and public projects.
5. Cultural Integration: Assimilation of diverse cultures and practices strengthened societal cohesion and loyalty.
Reasons for the Fall of the Roman Empire:
1. Political Corruption: Ineffective leadership and corruption weakened governance and administration.
See less2. Economic Decline: Heavy taxation, inflation, and economic mismanagement eroded financial stability.
3. Military Overreach: Overexpansion led to logistical challenges and vulnerability to external invasions.
4. Barbarian Invasions: Continuous invasions by barbarian tribes destabilized the Empire’s borders.
5. Internal Conflict: Civil wars and power struggles undermined unity and cohesion.