Foreign Exchange Remittance Facilities for Individuals | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS
Banker-Foreign Exchange Remittance Facilities Banker-Foreign Exchange Remittance Facilities for Individuals Evolution of FEMA The Foreign Exchange Management Act (FEMA), 1999 replaced the earlier FERA (Foreign Exchange Regulation Act), 1973. FEMA was enacted to facilitate external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India. It represents a shift from regulation to management, emphasizing liberalization and decriminalization of foreign exchange laws. Definitions under FEMA Authorized Person: Any person authorized by the RBI to deal in foreign exchange or foreign securities. Capital Account Transaction: A transaction that alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or inside India of persons resident outside India. Current Account Transaction: Transactions other th...