Foreign Exchange Regulations

Enterslicegroup14 Apr, 2021Finance

The Foreign Exchange Regulations are introduced to check the increased flow of funds both in and out of India. The foreign exchange regulations in India are regulated by the Reserve Bank of India (RBI) through Foreign Exchange Management Act (FEMA). The Foreign Exchange Regulation Act of 1973 (FERA) was repealed in 1999, and the Foreign Exchange Management Act of 1999 took its place (FEMA). FEMA was passed by the Indian Parliament and came into effect on June 1, 2000. FEMA was introduced to fill all the drawbacks and loopholes of FERA. Hence FEMA Act added various significant reforms.