Foreign Exchange Regulation Act

The Foreign Exchange Regulation Act (FERA) was an Indian law enacted to control and regulate foreign exchange and currency transactions. It aimed to preserve the country's foreign exchange reserves and prevent illegal foreign exchange dealings. Under FERA, individuals and businesses needed government approval to buy, sell, or transfer foreign currency, ensuring foreign exchange was used appropriately and legally. The act also prohibited black market dealings and currency speculation. FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1999, which adopted a more liberal approach towards foreign exchange regulations to promote economic growth.