fera-vs-fema

Fera To Fema

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DIFFERENCE BETWEEN FERA & FEMA

Sr.No.	Point	FERA	FEMA
1	Emphasis	On regulation of foreign exchange	On management of foreign exchange
2	Situation	Foreign exchange reserves positions was not satisfactory for that stringent controls were required on the use of foreign exchange	With the improvement in foreign exchange reserves such stringent controls are not required now.
3	Permission	Need to take permission of RBI in connection with remittances involving external trade	No need for seeking the permission of RBI in connection with remittances involving external trade except section3 relates to dealing in foreign exchange
4	Restrictions	These restrictions on drawals of foreign exchange for the purpose current account transactions	Section 5, it removes all the restrictions on drawals of foreign exchange for the papoose of current account transactions
5	Violations of Rules	Violations of FERA was treated as criminal offence and burden of proof was on the guilty	Violations of FEMA treated as civil offence removes the threat of imprisonment compared their illegal acts by paying a fine (not too high)