Objective

Focused On Strict Regulation and Control of Foreign Exchange Transactions, AIMED At conservation Foreign Exchange Reserves and Preventing Their depationalion.

AIMED At Liberalizing and Simplifying Foreign Exchange Regulations to Promote Foreign Investment, Facilities Trade, and Encourage Economic Growth.

Date of enactment

Enacted in 1973.

Enacted in 1999, repealing fee.

Approach

Adopted ARESTRICTIVE and Controlling Approach to Foreign Exchange Management, Requering Government Approval for Many Transactions.

Adopted A Liberal and Market-Oriented Approach, Emphasizing Simplification of Regulations and Promotion Ease of Doing Business.Varanasi Investment

Categories of transactions

DID Not Distinguish Between Current Account Transactions and Capital Account Transactions.

Categorized Foreign Exchange Transactions Into Current Acount Transactions (Trade-Related Payments) And Capital Account Transactions (Investments and LOANS) , Subjecting the thatm to do Different regulatory frameworks.Kanpur Investment

Authorized Dealers

DID Not have a formal system of Authorized Dealers for Foreign Exchange Transactions.

ESTABLISHED A System of Authorized Dealers, Such As Banks and Financial InstitutUTION Ations.

PenalTies

Imposed Stringent PenalTies, Including Fines and IMPRISONMENT, For Violatives of ITS PROVISIONS.

Imposes PenalTies for Non-Compliance But General Has Less Severe PenalTies Compared to Fera.

Flexibility

Offered Limited Flexibility in Foreign Exchange Transactions, with Many Transactions Requiring Prior's FROM GOVERNMENT Authorities.

IntRoduced Greater Flexibility in Foreign Exchange Transactions, Alowing for More StreamLineS and FeWer RESTRICTINS, ESPECIALLY in Current accept t RansActions.