A set of statements regarding FERA and FEMA are given Below: Select which of the statements is true about FERA or FEMA
i. An act promulgated, to regulate payments and foreign exchange in India.
ii. Introduced when Foreign exchange reserves were low.
iii. Violation of the ACT is a criminal offence
iv. Violation of the ACT is a civil offence

Foreign Exchange Regulation Act 1973 (FERA) was enacted in September 1973 and it came in force from January 1, 1974. It was amended by the Foreign Exchange Regulation (Amendment) Act 1993 and later in 2000, was replaced by FEMA. FEMA became an act on the 1st day of June, 2000. FEMA was introduced because the FERA didn’t fit in with post-liberalisation policies. A significant change that the FEMA brought with it, was that it made all offenses regarding foreign exchange civil offenses, as opposed to criminal offenses as dictated by FERA. The Comparison FERA: Act promulgated, to regulate payments and foreign exchange in India. is FERA. It is a New Enactment with 81 sections. Introduced when Foreign exchange reserves were low. Has a rigid approach towards forex transactions. Violation is a criminal Offense. Punishment for contravention is imprisonment. Basis for determining residential status is based on Citizenship FEMA: An act initiated to facilitate external trade and payments and to promote orderly management of the forex market in the country. It is an Old Enactment with 49 sections. Introduced when Foreign exchange position was satisfactory. Has a flexible approach towards forex transactions. Violation is a civil Offense. Punishment for contravention is fine or imprisonment (if fine not paid in the stipulated time). Basis for determining residential status is more than 6 months stay in India.