Question

Consider the following statements with reference to FEMA in India:

Choose the correct statement(s):

• A. 1 and 2 only
• B. 2 and 3 only
• C. All of these
• D. 3 only

Answer 1

The correct option is D

3 only

FERA was replaced by FEMA on June 1, 2000
Extra information:

Foreign Exchange Management Act (FEMA):

• Passed in 1999.
• Objective: To replace FERA (Foreign Exchange Regulations Act), 1973 which had become incompatible after economic reforms and pro-liberalization policies of the Government of India.
• Seeks to make offenses related to foreign exchange civil offenses.

Allows only the authorized people to deal with foreign security or foreign exchange.