Multiple choice

Which of the following is/are correct regarding FEMA, 1999?

  1. It replaced FERA, 1973

  2. It extends to the whole of India

  3. It applies to branches of banks outside India also

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

FEMA was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act (FERA). It extends to whole of India. Also, activities such as payments made to any person outside India or receipts from them are also involved. Thus, option 4 is the correct answer.

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