A Critical Analysis of Foreign Exchange Management Act: A Multi-Dimensional Approach
Author : Ram Sunmathi MB and Dr. MD Chinnu
Abstract :
The Foreign Exchange Management Act (FEMA), enacted in 1999, replaced FERA to liberalize India’s foreign exchange regime. This study evaluates FEMA’s objectives, legal framework, and its role in facilitating external trade and payments. It highlights how FEMA promotes orderly development of the foreign exchange market. The report examines enforcement mechanisms and the role of the Reserve Bank of India. Challenges such as compliance gaps and regulatory ambiguities are critically analyzed. Recent amendments and judicial interpretations are discussed to assess evolving trends. Recommendations are offered to strengthen FEMA’s effectiveness in a globalized economy.
Keywords :
Foreign Exchange, FERA, Economic Development, Indian Residents.
