The correct answer is 1999.Important PointsFERA was replaced by FEMA in 1998 by the Government of Atal Bihari Vajpayee.FEMA was passed in the winter session of Parliament on 29th December 1999.Foreign Exchange Regulations Act (FERA) is an act that imposes strict regulations on:Foreign exchange dealings,Securities and transactions have an indirect impact on foreign exchangeImport and export of foreign currencyOn conservation and optimal utilization of foreign exchange so as to promote economic development and growthCertain kinds of payment in foreign currency.FERA was passed in India in the year 1973 and it came into effect on 1st January 1974.Foreign Exchange Management Act (FEMA) is the act of the Parliament of India:To amend and consolidate regulations and laws related to foreign exchange.To facilitate external trade and payments for promoting orderly maintenance.To develop foreign exchange markets in India.FEMA paved the way for the introduction of the Prevention of Money Act, 2002 which became effective on 1st July 2005.FEMA acts as a regulatory mechanism enabling the Reserve Bank of India (RBI) and the Central Government to pass rules related to Foreign exchange as per the Foreign Trade Policy of India.