BANKING AFFAIRS

Detailed explanation-1: -Q. Which of the following is not the feature of FEMA? Answer: [B] There was a discharge provisions of criminal proceedings in case of default cases.

Detailed explanation-2: -Removal of restrictions on the drawl of foreign exchange for the purpose of capital account transactions is not an objective of FEMA. The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the Foreign Exchange Management Act.

Detailed explanation-3: -What are the features of FEMA? FEMA gives power to the central government for imposing restrictions on activities like making payments to a person situated outside of the country or receiving money through them. Apart from this, foreign exchange as well as foreign security deals are also restricted by FEMA.

Detailed explanation-4: -Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence and would now be treated as a civil offence and the Enforcement Directorate would no longer have the power to arrest persons for such offences. Was this answer helpful?

Detailed explanation-5: -The Foreign Exchange Management Act, 1999 (FEMA), is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India".