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When was Foreign Exchange Management Act (FEMA) passed by parliament of India?

When was Foreign Exchange Management Act (FEMA) passed by parliament of India? Correct Answer 1999

The correct answer is 1999.

Key Points

  • Foreign Exchange Management Act (FEMA)
    • It is a set of regulations that empowers the Reserve Bank of India to pass regulations and enables the Government of India to pass rules relating to foreign exchange with respect to the foreign trade policy of India.
    • The Foreign Exchange Management Act (FEMA) was introduced by the Indian Government in 1999, replacing the previous Foreign Exchange Regulation Act (FERA) of 1973.
    • It was passed on 29 December 1999.
    • FEMA became an act on the 1st day of June 2000.
    • FEMA replaced an act called Foreign Exchange Regulation Act (FERA).FERA (Foreign Exchange Regulation Act) legislation was passed in 1973.
    • The main objective for which FEMA was introduced was to facilitate external trade and payments.
    • It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country.
    • This act is in line with the WTO( World Trade Organization) framework.
    • No financial transactions concerning foreign securities or exchange can be carried out without the approval of the Foreign Exchange Management Act. 
    • FEMA was also formulated to assist the orderly development and maintenance of the Indian forex market.
    • Under the FEMA Act, the balance of payment is the record of dealings between the citizen of different countries in goods, services, and assets.
    • It is mainly divided into two categories, i.e. Capital Account and Current Account.

Related Questions

Two statements are followed by two Conclusions I and II. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. The Enforcement Directorate (ED) has sought information on offshore investments by directors of RNT Associates, a closely held firm which functions as a family office and investment vehicle of Ratan Tata.  II. The ED order, dated June 14, also calls for details of investments or loans from RNT Associates and its directors to a Singapore-based entity, RNT Associates Ltd. Conclusions: The order is under provisions of the Foreign Exchange Management Act (FEMA) and the documents are being sought for the purpose of investigation under FEMA. The nature of queries from Enforcement Directorate is related to RNT Associates’ investment portfolio. It is compliant with all disclosures and existing laws governing investments and is extending all cooperation.
In which year was the Foreign Exchange Management Act (FEMA) enacted to replace the Foreign Exchange Regulation Act (FERA)?
Assertion (A): Reserve Bank of India is an important regulatory and administrative authority to execute FEMA provisions. Reason (R): Being monetary authority and custodian of foreign exchange, Reserve bank of India enjoys requisite expertise of FEMA administration. In the context of the above two statements, which one of the following option is correct?
Assertion (A): Reserve Bank of India is an important regulatory and administrative authority to execute FEMA provisions.
Reason (R): Being monetary authority and custodian of foreign exchange, Reserve Bank of India enjoys requisite expertise of FEMA administration.
In the context of the above two statements, which one of the following option is correct?
Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of sender/distributor.
Reason (R): FEMA differs from the earlier Exchange Regulation Act FERA with regard to penalties and punishment in case of violation of the act.
Under foreign exchange risk measurement, economic risk emerges out of which of the following?
1. Riskiness of company's foreign exchange positions resulting from its business activities.
2. The holding period or length of time over which the foreign exchange position is planned to be held.
3. A change in the present value of the future after tax cash flows due to changes in exchange rates.
4. The unit of currency to be used for the denomination of the value of currency.
The Foreign Exchange Management Act(FEMA) was passed in:
What is correct about external emergency as per Article 352? i. It is proclaimed by the President. ii.. It should be approved by Parliament within two months. iii. It should be approved by Parliament within one month. iv. It should be approved by Parliament by simple majority. v. It should be approved by Parliament by 2/3 majority. vi. It can be revoked by simple majority of Parliament. vii. It can be revoked by 2/3 majority of Parliament. viii. It can be approved in joint session of Parliament. 
1500 students appeared in an examination, which consist of three papers: History, Geography and Economics. 190 students passed in History only, 180 students passed in Geography only whereas 240 students passed in Economics only. 366 students passed in both History and Economics, 346 students passed in both Economics and Geography and 326 passed in both History and Geography. 206 students passed in all the three papers. How many students passed in any two papers only?
Among 80 students, 24 passed in Chemistry, 35 passed in Physics and 29 passed in Mathematics, 8 students did not appear for the examination. If 2 students have passed in all the three subjects, 2 students have passed in Physics and Chemistry both but not in Mathematics, 2 students have passed in Chemistry and Mathematics both but not in Physics, and 8 students have passed in Physics and Mathematics both but not in Chemistry, then how many students have passed in Mathematics only?