Govt looking to amend FEMA to cut costs associated with remittances

Move among a series of measures to control CAD

The Narendra Modi government is planning to bring some amendments to the Foreign Exchange Management Act (FEMA) in the upcoming winter session of Parliament to encourage remittances by reducing the cost of transactions associated with them.

This is among a number of measures being contemplated by policymakers to control the current account deficit (CAD). The other measures being considered include partial or full rupee trade with Iran and Venezuela for oil, with Russia for gold and diamond, and a rupee-renminbi trade with China.

These are over and above the measures already carried out. On September 26, the government had raised import duties