Gift of the gab means _______
(1) Distributing gifts(2) Collecting garbage(3) Multi-linguist(4) Good Communication industries(5) Short-tempered
One of the following qualities is not required for effective marketing
(1) Self-motivation(2) Effective communication skills(3) Team work(4) Perservence(5) Sympathy
Public Relation is required for
(1) Improving customer service in the Company(2) Improving marketing functions in the Company(3) Better atmosphere in the Company(4) All of these(5) None of these
A marketing Plan is necessary for
(1) Having a focussed approach to marketing(2) To decide marketing strategies(3) To decide Product strategy(4) To decide Advertising Strategy(5) All of these
Customer Loyalty means ______
(1) Shifting of customers from one bank to another(2) Customers banking with one bank exclusively(3) Customers returning lost items(4) Customers giving gifts to banks(5) None of these
Internet Banking means ________
(1) Meeting of Banks on the Net(2) Net Practice(3) Banking transactions through Internet(4) Transactions with foreign countries(5) All of these
ATMs are __-------------
(1) Branches of Banks(2) Manned counters of banks(3) Unmanned cash dispensers(4) All of these(5) None of these
Credit Cards are used for _____
(1) Cash Withdrawls(2) Purchase of Airtickets(3) Purchase of consumable items from retail outlets(4) All of these(5) None of these
How was the experience of uiicl ?
Pls share your UIIC attempts
Uiic people please follow uiic 2014 thread thanks
Some one please post link here cant post from phone
Copy paste neither worked in descreptive @panzy @malikji
ey uyz wen can we expect SBI Associates PO result:(
Guys....... I am Finance MBA with 1.5 yrs experience , what are my chances? What type of questions I can expect in Interview. Can any one help on this ???????
Has the interview dates for the IBPS PO MT 4 out?? i have been regularly checking the site but there seems to be no updates. pls help !!
though this doubt might be stupid for some of you but why the currency issued by RBI must be backed by assets like gold etc?.........and suppose if our gold reserves decline what will happen?..........please explain in a simple manner
Made 95 attempts(General)..what are my chances of converting any bank?and what are my chances for IOB,Canara,PNB and Indian Bank to specific?
What is FERA?
The Foreign Exchange Management Act, 1999, (FEMA) is an Act to consolidate and amend the law relating to Foreign Exchange, with the objective of facilitating external trade and, payments and for promoting the orderly development and maintenance of the foreign exchange market in India.
(1) This Act may be called the Foreign Exchange Regulation Act, 1973.
(2) It extends to the whole of India.
(3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.
(4) It shall came into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Why FERA?
a) FERA was introduced at a time when foreign exchange (Forex) reserves of the country were low, Forex being a scarce commodity.
b) FERA therefore proceeded on the presumption that all foreign exchange earned by Indian residents rightfully belonged to the Government of India and had to be collected and surrendered to the Reserve bank of India (RBI).
c) It regulated not only transactions in Forex, but also all financial transactions with non-residents. FERA primarily prohibited all transactions, except to the extent permitted by general or specific permission by RBI.
Objective of FERA
The main objective of the FERA 1973 was to consolidate and amend the law regulating:
Ø certain payments;
Ø dealings in foreign exchange and securities;
Ø transactions, indirectly affecting foreign exchange;
Ø the import and export of currency, for the conservation of the foreign exchange resources of the country;
Ø the proper utilization of this foreign exchange so as to promote the economic development of the country
The basic purpose of FERA was:
a) To help RBI in maintaining exchange rate stability.
b) To conserve precious foreign exchange.
c) To prevent/regulate foreign business in India
Progression/Transfer of FERA to FEMA
FERA in its existing form became ineffective, therefore, increasingly incompatible with the change in economic policy in the early 1990s. While the need for sustained husbandry of foreign exchange was recognized, there was an outcry for a less aggressive and mellower enactment, couched in milder language. Thus, the Foreign Exchange Management Act, 1999 (FEMA) came into being.
The scheme of FERA provided for obtaining Reserve Bank's permission either special or general, in respect of most of the regulations there under. The general permissions have been granted by Reserve bank under these provisions in respect of various matters by issuing a large number of notifications from time to time since the Act came into force from 1st January 1974. Special permissions were granted upon the applicants submitting prescribed applications for the purpose. Thus, in order to understand the operative part of the regulations one had to refer to the Exchange Control Manual as well as the various notifications issued by RBI and the Central Government.
FEMA has brought about a sea change in this regard and except for section 3, which relates to dealing in foreign exchange, etc. no other provisions of FEMA stipulate obtaining RBI permission. It appears that this is a transition from the era of permissions to regulations. The emphasis of FEMA is on RBI laying down the regulations rather than granting permissions on case to case basis. This transition has also taken away the concept of "exchange control" and brought in the era of "exchange management". In view of this change, the title of the legislation has rightly been changed to FEMA.
The preamble to FEMA lays down that the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. As far as facilitating external trade is concerned, section 5 of the Act removes restrictions on drawal of foreign exchange for the purpose of current account transactions. As external trade i.e. import / export of goods & services involve transactions on current account, there will be no need for seeking RBI permissions in connection with remittances involving external trade. The need to remove restrictions on current account transactions was necessitated as the country had given notice to the IMF in August, 1994 that it had attained Article VIII status. This notice meant that no restrictions will be imposed on remittances of foreign exchange on account of current account transactions.
Need for FEMA
The demand for new legislation was basically on two main counts.
The FERA was introduced in 1974when India's foreign exchange reserves position was not satisfactory. It required stringent controls to conserve foreign exchange and to utilize in the best interest of the country. Very strict restrictions have outlived their utility in the current changed scenario. Secondly there was a need to remove the draconian provisions of FERA and have a forward-looking legislation covering foreign exchange matters.
Repeal of draconian provisions under FERA
The draconian regulations under FERA related to unbridled powers of Enforcement Directorate. These powers enabled Enforcement Directorate to arrest any person, search any premises, seize documents and start proceedings against any person for contravention of FERA or for preparations of contravention of FERA. The contravention under FERA was treated as criminal offence and the burden of proof was on the guilty.
Why there was a need to scrap FERA?
a) The Foreign Exchange Regulation Act was replaced by the Foreign Exchange Management Act as it was an impediment in India's to go global. b) India's foreign exchange transactions were governed under the Foreign Exchange Regulation Act until June 2000. This law had been enacted in 1973 when the Indian economy was facing a crisis and foreign exchange had become a precious commodity. But by the nineties, FERA had outlived its utility and was in fact, an impediment in India's effort to go global and compete with other developing countries. c) Thus, there was a need to scrap FERA and the Foreign Exchange Management Act, 1999 came into effect on June 1, 2000. However some of the relevant progresses made, from FERA to FEMA, are as follows:
Withdrawal of Foreign Exchange
Now, the restrictions on withdrawal of Foreign Exchange for the purpose of current Account Transactions, has been removed. However, the Central Government may, in public interest in consultation with the Reserve Bank impose such reasonable restrictions for current account transactions as may be prescribed.
FEMA has also by and large removed the restrictions on transactions in foreign Exchange on account of trade in goods, services except for retaining certain enabling provisions for the Central Government to impose reasonable restriction in public interest.
What is FEMA?
The Foreign Exchange Regulation Act of 1973 (FERA) in India was repealed on 1st June, 2000. It was replaced by the Foreign Exchange Management Act (FEMA), which was passed in the winter session of Parliament in 1999. Enacted in 1973, in the backdrop of acute shortage of Foreign Exchange in the country, FERA had a controversial 27 year stint during which many bosses of the Indian Corporate world found themselves at the mercy of the Enforcement Directorate (E.D.). Any offense under FERA was a criminal offense liable to imprisonment, whereas FEMA seeks to make offenses relating to foreign exchange civil offenses. FEMA, which has replaced FERA, had become the need of the hour since FERA had become incompatible with the pro-liberalization policies of the Government of India. FEMA has brought a new management regime of Foreign Exchange consistent with the emerging frame work of the World Trade Organization (WTO). It is another matter that enactment of FEMA also brought with it Prevention of Money Laundering Act, 2002 which came into effect recently from 1st July, 2005 and the heat of which is yet to be felt as "Enforcement Directorate" would be investigating the cases under PMLA too.
Unlike other laws where everything is permitted unless specifically prohibited, under FERA nothing was permitted unless specifically permitted. Hence the tenor and tone of the Act was very drastic. It provided for imprisonment of even a very minor offence. Under FERA, a person was presumed guilty unless he proved himself innocent whereas under other laws, a person is presumed innocent unless he is proven guilty.
a) Objectives and Extent of FEMA
The objective of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. FEMA extends to the whole of India. It applies to all branches, offices and agencies outside India owned or controlled by a person who is a resident of India and also to any contravention there under committed outside India by any person to whom this Act applies.
a) Key Terms/Glossary with respect to FERA & FEMA
1. Authorised Person - "Authorised person" means an authorised dealer, moneychanger, offshore banking unit or any other person for the time being authorised under section 10(1) to deal in foreign exchange securities.
2. Capital Account Transaction - "Capital account transaction" means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of person resident outside India, and includes transactions referred to in sub-section (3) of section 6
3. Current Account Transaction - "Current account transaction" means a transaction other than a capital account transaction and without prejudice to the generality of the foregoing such transaction includes,-
Ø Payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business.
Ø Payments due as interest on loans and as net income from investments.
Ø Remittances for living expenses of parents, spouse and children residing abroad, and
Ø Expenses in connection with foreign travel, education and medical care of parents, spouse and children;
1. Foreign exchange reserves - A country's reserves of foreign currencies. Commonly known as
"quick cash", they can be used immediately to finance imports and other foreign payables.
2. Foreign portfolio investment - Investment into financial instruments such as stocks and bonds
in which the objective is not to engage in business but to merely generate dividend income and
capital gains. The larger portion of international investment flows in the world today is FPIs.
3. Forward contract - An arrangement between two parties to trade specified amounts of two
Currencies at some designated future due date at an agreed price. More than a formal hedge
against unforeseen changes in currency prices, it guarantees certainty in the foreign exchange
rate at the contract's delivery date.
4. Authorised dealer - "authorised dealer" means a person for the time being authorised under
section 6 to deal in foreign exchange;
5. Drawal - "Drawal' means drawal of foreign exchange from an authorized person and includes
opening of Letter of Credit or use of International Debit Card or A TM card or any other
thing by whatever name called which has the effect of creating foreign exchange liability.
6. Currency [including relevant notification]"Currency" includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank.
New India Assurance AOs call letters out
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