Which of the following correctly describes the key difference between the Foreign Exchange Management Act (FEM

FERA, 1973 was a strict criminal law: violations were treated as criminal offences; the burden of proof was reversed (the accused had to prove innocence); violation could lead to imprisonment up to 7 years; and the Enforcement Directorate had sweeping powers of arrest and detention. FEMA, 1999 fundamentally changed this approach: violations are treated as civil contraventions (not criminal offences); penalties are monetary; the burden of proof rests with the government; and imprisonment occurs only for non-payment of penalties (not for the violation itself). FEMA also liberalised current account transactions (making them largely free) while retaining regulation over capital account transactions (investments, borrowings). This change was driven by India’s economic liberalisation and the need for a more business-friendly foreign exchange framework after 1991.