The foreign exchange regulations have been liberalised over the years to facilitate the remittance of funds both in and out of India. The changes have been introduced on a continuous basis in line with the government policy of economic liberalization. Still, in few cases, specific approvals are required from the regulatory authorities for foreign exchange transactions/remittances.
FEMA is not only applicable to all parts of India but is also applicable to all branches, offices and set-ups outside India which are owned or controlled by a person resident in India. It also applies to all branches, offices and set-ups in India which are controlled or owned by person resident outside India. FEMA regulates all aspects of foreign exchange and has direct implications on external trade and payments.