Master Direction- Compounding of Contraventions under FEMA, 1999

Question 1

Officerwise Power of Compounding in RBI

Answer 1

AGM – 10 lakhs or below, DGM – More than 10 lakhs and less than 40 lakhs, GM – 40 lakhs and above but less than 1 Crore, CGM – 1 Crore and above

Question 2

Which contraventions can be compounded

Answer 2

Quantifiable

Question 3

What is the fees for applying for compounding contraventions

Answer 3

Rs. 5000

Question 4

A contravention of a similar nature committed similar within ………….. from the first contravention shall not be compounded.

Answer 4

3 years. If it is committed after 3 years than it should be treated as fresh contravention

Question 5

The application must be compounded within ………. days from the receipt of Application

Answer 5

180

Question 6

Payment of the amount for which contravention is compounded shall be made within …. days from the date of the order of compounding of such contravention.

Answer 6

15

Question 7

In terms of Section 13(1), if any person contravenes any provision of FEMA, 1999,
or any rule, regulation, notification, direction or order issued in exercise of the
powers under this Act, or contravenes any condition subject to which an
authorization is issued by the Reserve Bank, he shall, upon adjudication, be liable to
a penalty up to ………………. the sum involved in such contravention where the amount is
quantifiable or up to …………………, where the amount is not directly quantifiable
and where the contravention is a continuing one, further penalty which may extend to
…………………………… for every day after the first day during which the
contravention continues.

Answer 7

thrice, Rupees Two lakhs, Rupees Five thousand