Last updated: August 1st, 2020 2:35 AM

Foreign Exchange Management Act, 1999

The legal framework for administering foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. In the winter session of the Parliament on 4 August, 1998, the Foreign Exchange Management Act was presented. There are several purposes of the Foreign Exchange Management Act. To rectify and put together, the statutes related to foreign exchange is one of the important purposes of the FEMA Act. The Foreign Exchange Management Act aims at promoting foreign payments and trade in India. Another vital purpose of the Foreign Exchange Management Act is to improve and maintain the foreign exchange market in India. The Foreign Exchange Management Act also makes the offence related to foreign exchange civil offence. This Act came into force on 1 June 2000. This Act extends to the whole of India. Since its enforcement, this Act has been amended ninety-three times.