The Foreign Exchange Management Act (FEMA), which replaced the restrictive Foreign Exchange Regulation Act (FERA) of 1973, was enacted by the Parliament of India in which year?

💡 Solution & Explanation

The Foreign Exchange Management Act was enacted by the Indian Parliament in December 1999 to replace the restrictive Foreign Exchange Regulation Act of 1973 in alignment with economic liberalization policies. This legislative shift aimed to facilitate external trade and payments while promoting the orderly development of the foreign exchange market in India. FEMA classifies foreign exchange violations as civil offenses rather than criminal ones under FERA.