Sr.No.
Point FERA
1 Emphasis On regulation of foreign exchange
2 Situation Foreign exchange reserves positions
was not satisfactory for that stringent
controls were required on the use of
foreign exchange
3 Permission Need to take permission of RBI in
connection with remittances involving
external trade
4 Restrictions These restrictions on drawals of
foreign exchange for the purpose
current account transactions
5 Violations of Violations of FERA was treated as
Rules criminal offence and burden of proof
was on the guilty
FEMA
On management of foreign exchange
With the improvement in foreign exchange reserves
such stringent controls are not required now.
No need for seeking the permission of RBI in
connection with remittances involving external trade
except section3 relates to dealing in foreign exchange
Section 5, it removes all the restrictions on drawals of
foreign exchange for the papoose of current account
transactions
Violations of FEMA treated as civil offence removes
the threat of imprisonment compared their illegal acts
by paying a fine (not too high)