{"id":55501,"date":"2025-07-17T18:15:12","date_gmt":"2025-07-17T12:45:12","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=55501"},"modified":"2025-07-18T11:38:44","modified_gmt":"2025-07-18T06:08:44","slug":"difference-between-fera-and-fema","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/difference-between-fera-and-fema\/","title":{"rendered":"Difference Between FERA and FEMA, Significance, Key Points"},"content":{"rendered":"

Foreign exchange regulations are responsible for managing a country’s foreign transactions and maintaining economic stability. India, recognizing the need to regulate the inflow and outflow of foreign currency, implemented two major laws which includes FERA (Foreign Exchange Regulation Act) and FEMA (Foreign Exchange Management Act). Both laws serve a varied purpose of regulating foreign exchange but they differ in objectives, provisions, and approach.<\/span><\/p>\n

What is FERA?<\/b><\/h2>\n

The Foreign Exchange Regulation Act (FERA) was introduced in 1973 when foreign exchange reserves of India were critically low. FERA was designed to regulate and conserve foreign exchange resources. It granted the Reserve Bank of India and the central government powers to control and restrict foreign exchange transactions, capital flows, and dealings involving foreign companies in India.<\/span><\/p>\n

Under FERA, all foreign exchange transactions required prior approval from the Reserve Bank of India. The law expects every foreign exchange violation as a criminal offense, which often leads to prosecution and imprisonment.<\/span><\/p>\n

Key Features of FERA<\/b><\/h3>\n