Master Circular on Compounding of Contraventions under FEMA, 1999
This Master Circular consolidates the compounding of contraventions under the Foreign Exchange Management Act, 1999 (FEMA).
Compounding Powers: The Reserve Bank of India (RBI) has delegated compounding powers to its officers and the Enforcement Directorate (ED).
Delegation of Powers: The RBI has delegated powers to its officers to compound certain contraventions, while the ED has been empowered to compound other contraventions.
Process of Compounding: The process involves filing an application with the Compounding Authority, which will then issue a compounding order.
Scope and Manner of Compounding: The scope and manner of compounding are outlined in the Foreign Exchange (Compounding Proceedings) Rules, 2000.
Issue of the Compounding Order: The Compounding Authority will issue an order specifying the amount to be paid as compounding fees.
Post-compounding procedure: The applicant must pay the compounding fees and comply with the conditions specified in the order.
Pre-requisites for compounding process: The applicant must submit a duly filled-in application in the prescribed format, along with the required documents and fees.
Annex-I: The Foreign Exchange (Compounding Proceedings) Rules, 2000, are annexed to this circular.
Procedure for Compounding: The procedure for compounding is outlined in the Rules, including the payment of the compounded amount.
Contents of the order of the Compounding Authority: The order will specify the amount to be paid, the period within which it must be paid, and any other conditions.
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Download: Master Circular on Compounding of Contraventions under FEMA, 1999