On this page, We are going to learn about the full form of FEMA and the meaning of FEMA, As well as the meaning, definition, abbreviation, and acronym for FEMA in different categories. So you should read this post till the end.
The Full Form of FEMA – Foreign Exchange Management Act
FEMA Stands for Foreign Exchange Management Act. The Foreign Exchange Management Act (FEMA) of 2008 was passed to regulate the exchange of U.S. dollars for foreign currencies.
The primary purpose of FEMA is to control the number of dollars that can be exchanged by Americans, but it also has the effect of making it more difficult to get dollars in and out of the country.
The secondary purpose of FEMA is to protect the U.S. dollar from being undermined by other currencies. The law is administered by the Federal Reserve.
What are the Key Features of FEMA
- FEMA is compliant with current account convertibility and provides for progressive liberalization of capital account transactions.
- FEMA has divided foreign exchange transactions into two categories namely capital account transactions and current account transactions.
- ATM cards, debit cards, and credit cards are included under FEMA.
- FEMA allows you to sell or attract foreign exchange without prior permission from RBI but you can inform RBI later.
- FEMA specifies the areas that require the permission of the RBI or the government.