What is the Full Form of FERA?

The full form of FERA is ‘Foreign Exchange Regulation Act’. The Indian Parliament approved the Foreign Exchange Management Act (FEMA) in 1999 with the stated intention of “consolidating and amending the law regarding foreign interaction to encourage trade flows and payouts and try to promote the organized creation and maintenance of the foreign exchange market in India.” On December 29, 1999, the Foreign Exchange Regulation Act was abolished and the FEMA Act took its place. This statute now classifies acts involving foreign exchange as civil offenses.

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Interesting Facts About FERA

• The Parliament of India established the Foreign Exchange Regulation Act in 1973
• On January 1st, 1974, FERA came into effect.
• Vajpayee government repealed FERA in 1998.
• FERA has 81 sections

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Important Features of FERA 

FERA’s overall goal, which was to protect the nation’s foreign exchange reserves, was one of its many objectives. Among FERA’s key components are the following:

• Any individual or organization can transact in foreign exchange with approval from the Reserve Bank of India (RBI).
• Brokers are allowed to trade in foreign currencies by the Reserve Bank of India, subject to review and revocation in the case of non-compliance.
• Currency conversions by money changers are allowed at the RBI-set rates.
• Currency import/export restrictions
• Financial currency transactions may only be carried out by authorized dealers.
• There are some restrictions on owning or acquiring immovable property outside India. 

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