Master Circular on Compounding of Contraventions under FEMA, 1999
This Master Circular outlines the guidelines for compounding of contraventions under the Foreign Exchange Management Act, 1999 (FEMA).
Compounding Powers: The Reserve Bank of India (RBI) has the power to compound contraventions under FEMA, which has been delegated to various authorities.
Process of Compounding: The process involves submission of an application, payment of the compounded amount, and issuance of a compounding order.
Scope and Manner of Compounding: The RBI has the discretion to compound contraventions, and the manner of compounding is outlined in the Foreign Exchange (Compounding Proceedings) Rules, 2000.
Post-compounding Procedure: After compounding, the applicant must furnish details of the compounding order and make the necessary payment.
Pre-requisites for Compounding Process: The applicant must submit a complete application with all necessary details and pay the compounded amount.
Annexures: The circular includes annexures providing details on the Foreign Exchange (Compounding Proceedings) Rules, 2000, and the format of the application for compounding of contraventions.
FDI: The circular also provides details on the compounding of contraventions related to Foreign Direct Investment (FDI).
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Download: Master Circular on Compounding of Contraventions under FEMA, 1999