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How Fema Is Different

  • Focus on management with foreign exchange surplus economy in mind. Similar treatment for current account and capital account transactions.
  • Dollar sale rules relaxed with clear cut conditions. RBI approval not required.
  • ED to only investigate cases referred to it by RBI. It has powers to search, but not to summon and arrest. Can arrest only with RBI approval and clearance from a magistrate. Statements recorded before ED not admissible in court.
  • Remittances into the accounts of kin in India allowed within permissible limits and as per RBI rules.
  • Won't cover economic and financial offences involving foreign exchange. New money-laundering Bill to tackle these issues.
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