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Option 2 : 1999
The correct answer is 1999.
- FERA was replaced by FEMA in 1998 by the Government of Atal Bihari Vajpayee.
- FEMA was passed in the winter session of Parliament on 29th December 1999.
- Foreign Exchange Regulations Act (FERA) is an act that imposes strict regulations on:
- Foreign exchange dealings,
- Securities and transactions have an indirect impact on foreign exchange
- Import and export of foreign currency
- On conservation and optimal utilization of foreign exchange so as to promote economic development and growth
- Certain kinds of payment in foreign currency.
- FERA was passed in India in the year 1973 and it came into effect on 1st January 1974.
- Foreign Exchange Management Act (FEMA) is the act of the Parliament of India:
- To amend and consolidate regulations and laws related to foreign exchange.
- To facilitate external trade and payments for promoting orderly maintenance.
- To develop foreign exchange markets in India.
- FEMA paved the way for the introduction of the Prevention of Money Act, 2002 which became effective on 1st July 2005.
- FEMA acts as a regulatory mechanism enabling the Reserve Bank of India (RBI) and the Central Government to pass rules related to Foreign exchange as per the Foreign Trade Policy of India.
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