38. FOREIGN EXCHANGE MANAGEMENT ACT-1999
In the era of liberalization, the stringent gFERAh is replaced by this Act. The stringent provisions of FERA are replaced. Procedures are made short and simple. Though still permission of Reserve Bank of India is required in some cases. Offences under this Act are now compoundable. Penalties are now limited to fines only.

Reserve Bank is empowered to authorise any person to deal in foreign exchange or foreign securities. Payment for imports, etc. in foreign currency are made simple. Powers of enforcing authorities are reduced.

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