What is the Full form of FEMA? About FEMA
FEMA Full Form – Foreign Exchange Management Act or FEMA is more commonly known as Foreign Exchange Management Act 1999. It is an Act passed by the Parliament of India on 29th December of India. The aim of FEMA is to consolidate and amend the law relating to foreign exchange with the objective of accelerating the process of external trade and payments. It promotes the proper development and maintenance of foreign exchange market in India.
In FEMA, all offences related to foreign exchange are listed to be considered as civil offences. FEMA gives the Government of India to restrict any movement of payment or receipt between a person from outside the country and a person in a country.
This act replaced FERA or Foreign Exchange Regulation Act as it couldn’t cope up with the pro-liberalisation policies of the Government of India. It is compatible with the emerging policies of the WTO (World Trade Organization). It also paved the way for many policies like the Prevention of Money Laundering ACT, 2002