The Foreign Exchange Management Act came into force in:

Correct option is D

The Foreign Exchange Management Act (FEMA) was enacted in 1999 and came into effect on June 1, 2000. It replaced the older Foreign Exchange Regulation Act (FERA) of 1973 and aimed at facilitating external trade and payments while promoting the orderly development of the foreign exchange market in India.

Information Booster:

• FEMA allows free flow of foreign exchange, unlike FERA, which had strict controls.
• It governs foreign investment, external trade, and cross-border financial transactions.
• It is regulated by the Reserve Bank of India (RBI) and enforced by the Directorate of Enforcement (ED).

Additional Knowledge:

• FERA (1973) was replaced by FEMA due to globalization and economic liberalization.
• FEMA violations are treated as civil offenses, whereas FERA violations were criminal offenses.